Property Purchasers Make Bold Decisions as Article 50 is Triggered

  • Almost two thirds (63%) of 18-24 year olds said they have reconsidered purchasing a property due to losing faith in the economy.
  • Residents in the South East of England are postponing purchasing a property as they’ve lost most faith in the economy .

A survey of 2,000 homeowners, commissioned by leading property consultants Cluttons, in partnership with OnePoll, revealed that 18-24 year olds have postponed an upcoming property purchase due to concerns over the strength of the post Brexit economy.

Reflecting the results seen from the referendum on Thursday 23rd June 2016, over three quarters (82.07%) of people surveyed aged 55+ agreed that the Brexit decision hasn’t impacted their property purchase intensions at all, showing that the older generation are more likely to take a risk when purchasing a property.

At a regional level, residents of Oxford were the most concerned with the impact of a failing post Brexit economy on the property market. 80% stated they were reconsidering purchasing a property since the leave victory in the referendum, which is significantly above the national average of 53.7%.

The results from Oxford are surprising as the South East voted in majority (51.8%) to leave the European Union, according to government data.

Residents in York (72.7%) and Norwich (72.2%) also admitted that the referendum result had reduced their faith in the economy and therefore a vast majority of respondents respectively were reconsidering moving house.

Despite the Government triggering article 50, a third (35.00%) of homeowners say they are looking to move or upgrade their current property with 72% of people stating that Brexit has no impact on their intension to purchase.

Top 3 regions that state Brexit has not impacted their property purchasing intentions:

  1. South East (78%)
  2. Midlands (77%)
  3. Scotland and South West (75%)

This was closely followed by London (73%), Wales (73%) and Northern Ireland (69%).

The results received showed that 29% of the total UK residents surveyed, agreed that they found the Brexit decision a chance to capitalise on a failing market with only 5% of people not buying a house until the Brexit process has been completed.

Over a quarter (29.03%) of people classed base rate worries as the third top reason for not investing in a property since Brexit, with residents in Wales agreeing the most; Wrexham (75%) and Swansea (70%).

Results seen from Wales are surprising as according to government data, Wales voted in majority (52.5%) of leaving the European Union.

Commenting on the results, Cluttons Head of research, Faisal Durrani said, “Brexit has undoubtedly fuelled economic anxiety across the country. When combined with more macro issues such as the ongoing evolution of US global economic policies means we are in the midst of the most uncertain economic conditions since the Great Recession of 2008.

“That said, it is encouraging to note that despite heated discussions in the wake of the Brexit referendum results, it’s clear that our nation’s home buyers have not been deterred by political events in Westminster and many home buyers and vendors are returning to the market in their droves with a business as usual attitude. Households are keen for life to carry on as normal and the current slowdown in house price growth is just part of another property cycle, Brexit or not.”

For further information about Cluttons, visit their website here – http://www.cluttons.com/gb

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