Psychology of Brexit: Property market drops in Remain areas, while Leave voters deliver local boost

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New buyer registrations have fallen 30% in pro-Remain London, figures from estage agents Haart has found.

The study revealed that areas who voted for the UK to leave the EU have seen a positive effect on their local property market, while areas that voted ‘Remain’ have seen a significant drop in activity.

Overall, Remain branches saw a 6% fall in the number of listed properties, while Leave branches saw a 1% increase in the number of listings.

Six out of ten Leave branches reported an increase in listings, while in Remain areas the opposite was true, with six out of ten reporting a fall in the number of listings.

The number of registrations with haart branches fell in both Leave and Remain areas, down 30% on average in Remain areas but only down 23% in Leave areas.

haart’s most recent data has shown that in the month of July, London as a whole saw a 5.6% fall in prices, the equivalent of over £30,000 off the average property value, which now stands at £527,349, as the city bares the worst of the post-Brexit uncertaintY. Nationally prices have been more stable in the past month, down just 0.9% across England, and now sitting at an average of £233,254. Across London the number of sales was also down 16% in July, while new buyer viewings were down 3.3%. However across London branches, haart data suggests that pro-Leave areas are performing better than areas which voted Remain.

Paul Smith, CEO of haart estate agents, said: “It’s clear that the ‘winners’ of the EU referendum are feeling much more confident about the future of the property market than those who voted Remain. The doom and gloom of the campaign has obviously had a lasting impact on how Remain voters feel about the economy and the property market, while Leave voters are much more relaxed. The areas that had the strongest Leave vote are even seeing a small surge in activity.

“The reality is that we have a property market heavily driven by sentiment, and it’s the confident Leavers who are currently keeping the market afloat. If the government can continue to provide a strong vision for the UK’s post-Brexit future and a clear timetable for an EU exit, greater stability and confidence will follow, which might reassure Remainers. However if they can’t be convinced we could see the market and wider economy flat-lining for some time. Nevertheless the fundamentals of the residential market are strong, with people more determined than ever to get on to and move up the ladder, so we have every reason to be confident. When it comes to Brexit, it seems the only thing we have to fear is fear itself.”

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