Much has been said in the press over the last year-or-so about the affect that Brexit is having on the property market. And indeed, although recent reports have suggested that many would-be sellers are being deterred by the combination of ‘muted pricing power’ and ‘short-term political uncertainty’, the latest figures show that 70% of homeowners who planned to sell their property this year stated that uncertainty around the UK leaving the EU did not deter them from doing so.
Despite yet another Brexit milestone missed this week, this figure is only nine percentage points lower than Jackson-Stops’ 2017 research which asked the same question of active home sellers. In 2017, 79% of active home sellers stated political uncertainty did not deter them from listing their home on the housing market.
Whilst a deal has not yet been agreed between the UK and the EU, Jackson-Stops’ data also revealed that in an event of a no-deal Brexit almost four in 10 (39%) respondents said that it would have no impact at all on their home buying decisions. Meanwhile, only 14% of UK consumers believe a no-deal Brexit would have a strong impact on their decision to put their home on the market.
Boris’ Leadership & SDLT
It has been widely reported that stamp duty land tax (SDLT) is disrupting the housing market, with both buyers and sellers holding back from making a move due to these charges.
The Jackson-Stops research reveals that 41% of respondents, who encompassed both buyers and sellers, believe a wholesale reduction in SDLT is required across all brackets. It was widely reported during Boris Johnson’s campaign for Prime Minister that he planned to overhaul the stamp duty property tax charges. Yet since taking on the role as the UK’s Prime Minister no further clarity has been provided. It is therefore unsurprising that more than half of Jackson-Stops’ respondents (55%) believe housing isn’t a priority for Boris Johnson.
Relocations due to Brexit
Relocation is also not a consideration for 60% of respondents, who confirmed that they wouldn’t consider leaving the UK or buying a second home abroad in the event of Brexit. Less than four in ten people (37%) said they would consider moving outside of the UK because of Brexit, whilst only 3% are currently in the process of either moving out of the UK or buying a second home abroad for this reason.
Nick Leeming, Chairman at Jackson-Stops, comments on the findings: “Although the UK lacks confidence in Boris Johnson’s ability, or want, to prioritise improving the housing market, it is positive to see so many respondents unfazed by the prospect of the country leaving the EU. Only 14% of UK consumers stated a no-deal Brexit would have a strong impact on their decision to put their home on the housing market. Therefore, we must look to other underlying market fundamentals, such as punitive stamp duty charges, as a remedy for creating more movement throughout the property market. Our latest data shows that the constant ‘will we or won’t we’ debate on when the UK will leave the EU is no longer a dominant factor in people’s homebuying and selling decisions.
The current market is very discerning and buying or selling a home isn’t something that people do off the cuff – there is often an overriding reason for moving, whether that is to be closer to schools or childcare, the need to upsize or downsize or even to experience a more relaxed lifestyle. Now represents an ideal time for homeowners to put their property on the market; those high-quality, well priced homes are attracting the attention of serious buyers, and our branches in particular are succeeding in delivering excellent sales, despite the unusual market conditions.”
