Faster house price growth witnessed in areas that voted leave, claims new research

The online estate agent analysed average house price changes in 324 English Local Authority Areas (LAAs) since the EU Referendum vote in June 2016 and found 16 of the top 20 performing LAAs voted Leave, including Rutland (26.27%), Corby (24.8%), Harborough (23.79%), Blaby (21.68%) and Forest of Dean (21.47%), with 10 of the top 20 performing LAAs based in the East Midlands.

Only 4 Remain voting LAAs made it into the top 20, including best performer Cotswolds (30.45%), Leicester (21.57%), Rushcliffe (19.62%) and Stroud (19.35%).

Meanwhile, average house prices in London and the South East have been hardest hit since the crucial vote in 2016. 12 of the worst performing 20 LAAs are in London, including the City of London (-11.86%), Westminster (-10.08%), and Hammersmith & Fulham (-8.20%), while commuter belt LAAs Bracknell Forest (-6.63%), Elmbridge (-4.32%), and Windsor & Maidenhead (-0.66%) also recorded price drops.

Sam Mitchell, CEO at Housesimple, said: “It is important to remember that correlation does not always equal causality. Just voting Leave hasn’t made your house more valuable on its own. There are a range of reasons driving house prices in England.

The data points to an overall North-South divide. Brexit uncertainty does not appear to have affected the North to the extent that we may be seeing in the South. Other Important factors underpin these findings, including punitive stamp duty that has a lower impact on properties valued under £500,000 so there is less of a drag factor in the North.

We’re also seeing a longer term trend whereby house price growth in London and the South East that really took off in 2012 has been slowing to more sustainable levels since 2016, or even dropping in some London LAAs. At the same time properties in the North and the Midlands saw more modest growth post 2007, and cities like Manchester, Liverpool, Leicester and Leeds have robust local economies and increasing demand for housing which has helped to drive double digit price increases since the referendum

The bottom line is that despite the fact Brexit uncertainty will now drag on into 2020, the market fundamentals - a long-running supply and demand issue, historically low interest rates and growing income levels - remain in place. Life goes on, people still need to buy and sell. Why put your life on hold for Brexit? Keep going and find an estate agent that makes the process simple, transparent and free.”