Property

Property transactions in the capital hit hardest by Brexit slowdown

Warren Lewis
|
10th September 2019
East London 410

Newly released figures from estate agent, Springbok Properties, has revealed that London boroughs have seen property transactions fall by a greater proportion than the rest of the UK since the EU Referendum vote on 23rd June 2016.

Despite this, areas across Wales, Northern Ireland, Scotland and the North of England are seeing more transactions than before the vote.

The firm used Land Registry data to compare the number of transactions in the two years and nine months before the Brexit vote to the same timeframe afterward.

London and the South hit hard

The biggest drop across the UK was in the London borough of Kensington and Chelsea (-42.4%), followed by Islington (-35.4%), City of Westminster (-31.9%) and Enfield (-30.2%).

London boroughs made up the rest of the top 10, with the exception of nearby Watford (-27.5%) in Hertfordshire, in 10th place.
Other areas that recorded big slowdowns were typically in the South of England, like Slough (-27.2%), Oxford (-25.9%) and Brighton and Hove (-24.5%).

Rest of the UK on the up

Two areas in Wales have seen the biggest increase in transactions since the Brexit vote, Torfaen (30.6%) and Newport (25.1%). Other strong performers were Knowsley in Merseyside (23.5%), Antrim and Newtownabbey in Northern Ireland (21.9%), as well as East Lothian (21.8%) and Renfrewshire (21.3%), both in Scotland.

Looking at transaction levels by country in the United Kingdom, the biggest drop in transactions happened in England at -5.2%, while Northern Ireland saw the sharpest increase of 11.6%.

Wales saw an 8.4% uplift in activity, while transactions in Scotland increased by 5.7%.

Shepherd Ncube, founder and CEO of Springbok Properties, commented: “The decline of the UK property market as a result of Brexit uncertainty has been well documented and particularly in England, this decline has been spearheaded by London and the South East.

However, the market landscape is a vast and varied one and there are many pockets across the UK that have not only weathered the storm, but have actually seen more transactions since the EU Referendum then in the same time period preceding it.

These have largely been the more affordable areas where the reality between seller expectation and what buyers are willing to pay is far smaller than the capital and surrounding areas. As a result, less indecision on the part of both buyers and sellers has seen the market continue to operate as normal while other areas have stalled.”

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