One in six adults have put off plans to move home because of Brexit, research claims.
The data, based on a poll of 2,000 people in the UK by ‘campaign group’ the HomeOwners Alliance and its stakeholder LP Insurance, used the adult population of 51m to extrapolate that 1m have shelved plans due to the EU referendum result.
However, it is important to note that only 1,301 of those polled were actually home owners.
There were other, and more pressing, reasons for reluctance or inability to move, with 26% of households citing 2 rising house prices, the same proportion blaming the rising cost of living and 25% blaming difficulty in getting a mortgage.
Paula Higgins, chief executive of the HomeOwners Alliance, said: “Our research demonstrates that both first-time buyers and those who already own a home are choosing to play it safe in these uncertain times.
“With the Government preparing to trigger Article 50 this week, we can expect further uncertainty in the market until the UK’s future relationship with Europe is more clearly defined.
“People putting off plans to buy or sell chokes housing supply and generates pent up demand. The housing market needs certainty in order to be able to function most efficiently.
“The Government could help to ameliorate the situation by looking again at Stamp Duty. It remains stubbornly high and acts as a drag on the market. Reducing the burden for genuine owner-occupiers could really help to keep the market moving in these uncertain times.”
Commenting on the figures, Kim Vernau, chief executive of BLP Insurance, which has a stake in the HomeOwners Alliance, said: “We’re at a critical juncture for the UK property industry as we await further clarity around the terms of the UK’s exit from EU.
“Purchasing a new home is one of the biggest decisions that an individual is ever likely to undertake, and this is only compounded by the fact that average house prices are continuing on their upward trajectory. It’s therefore not surprising that many people are putting their housing ambitions on hold amidst the prevailing uncertainty.”
A growing population and a shortage of housing stock is fact. Number one is affordability. Brexit excuse is just another popular whinge by those that want to stay.
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You would have thought the main effect was from the result of the referendum – I felt a drop in confidence for a few months after. I agree with Woodentop – its just an excuse for a whinge….
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In my opinion.
The housing market is always dangling on a delicate thread. Any strong wind disturbs the market.
Things go slow, at war time, (gulf), 911, in the run up to an election and we now know in the run up to a referendum.
#Brexit has caused uncertainty. The housing market does not like uncertainty.
In my honest opinion, if the #Brexit result was the other way around, I think the news and media would of been equally negative. With headlines, like, we have just permanently linked ourselves to a sinking ship etc etc.
Basically. The housing market was over-inflated. A change in consumer confidence, was always going to burst the bubble.
Add to that, the rip-off Stamp Duties introduced by Gordon Brown and the raid on landlords, by Osbourn and we have had Governments who are anti housing since 1997.
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Not an excuse for a whinge – I think it is a genuine fear and cause for concern for many (including me). The issue is that people are putting ‘effect’ onto Brexit when it actually isn’t a ’cause’.
Slowdown of the market last year actually happened at a very similar time to the Brexit vote, which is why people think that the referendum has caused the downturn. Actually, the real cause of the downturn was a couple of months prior – the introduction of the stamp duty levy. Buyers, especially landlords, rushed through their purchases before April, meaning 50pc of 2016’s total purchases were made in Q1.
That left 50pc of remaining purchases spread thinly across Q2, Q3 and Q4. And that’s why people think the referendum vote has caused the market to slip slightly. From the average viewer it may look like that but, as explained, the wheels were already in motion and the referendum decision was seen as a far more economically-impactful decision than the relatively minor stamp duty change (comparatively). However, we all know the truth.
June saw a Leave vote and a dead housing market. Nobody is to blame for thinking that’s the cause, but no serious property person will ever back that argument up, because it was something else that caused problems.
Don’t worry, it will pick up for about 18months now before we leave in 2019. These things ebb and flow and we’re currently recovering from low ebb.
Relax people.
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