Birmingham, which saw a marginal win for Leave (50.4%), has witnessed the biggest house price increases since Brexit at 8%. At the opposite end of the scale, Aberdeen is the only city of the 20 analysed that experienced a fall in house price growth. Cambridge and Oxford, which heavily backed the remain campaign (73.8% and 70.3% respectively), have also experienced disappointing growth in the past year with each city experiencing less than 2% growth.
Overall, three of the four best-performing cities backed Brexit while nine of the ten worst-performing areas voted to stay in the EU. London, where more than two million people voted Remain, has also seen a fall in the unsustainable rates of annual price growth. Nevertheless, the capital remains the most expensive place to buy a property in the UK.
Robert Weaver, Director of Property at Property Partner, commented: “Markets are built on confidence. Those that think Brexit is a good thing are running their lives as normal, perhaps with a little more optimism for the future, and that can mean moving house or investing in property.
‘Remainers’ will have less confidence in the UK’s economic outlook, and so might choose to delay big life decisions and investments. In turbulent political times, house prices have continued to rise because there is an ongoing imbalance between supply and demand. Brexit might impact demand to some extent, but limitations on supply still dominate the market.
The result is that, nearly eighteen months on from Britain’s decision to leave the European Union, salt is being rubbed into the wounds of ‘Remainers’ as the value of their properties is hit harder than those of ‘Leavers’. The reality across the board is that UK house price growth is stalling, but it is still growing – albeit at a slow and steady rate. And that continued growth in property value throughout the past year demonstrates the resilience of the sector amid political upheaval.”
