New research has shown that property in constituencies with a majority leave vote in the Brexit referendum is outperforming property in remain constituencies.
Since the referendum, political uncertainty has impacted the UK market, deterring buyers and sellers and seeing the rate of house price growth slow to historic lows. This could continue, with yet another Brexit delay announced this week.
However, research by for sale by owner platform, OkayLah, has found that this impact has been worst felt in constituencies to have voted remain, with price growth since the vote more than 1 per cent less than those that voted to leave. At 10.7 per cent remain constituencies have still enjoyed some positive property price movement, but this still trails the 11.8 per cent seen across leave areas.
Of the ten best areas to have benefitted from the highest rates of property price growth since the vote, just three of these constituencies were home to a remain majority.
Leave constituency Clacton has enjoyed the highest increase at 25.7 per cent, East Ham is the best performing remain constituency with an increase of 25.6 per cent and Bedford and Salford and Eccles have also seen growth of 25 per cent or more.
North East Bedfordshire (leave), Birmingham Ladywood (remain), Coventry North East, Colchester, Romford (leave) and Bristol East (remain) are also home to some of the highest house price increases since the vote.
On the other hand, 80 per cent of the top ten worst constituencies for property price growth since the vote were home to a remain majority. Putney has seen the worst decline with a drop of -4.3 per cent, Newcastle upon Tyne East has seen prices fall -3.9 per cent and Islington South and Finsbury is down -2.8 per cent while Islington North has dropped -1.8 per cent.
Blyth Valley is the worst performing leave majority constituency with prices down -0.7 per cent.
Founder and CEO of OkayLah, Paul Telford, commented: ‘There’s no doubting that the government’s failure over Brexit and the impact it’s had on the property market and wider economy. However, those to have voted leave will be feeling a little better about the situation given the fact house prices in these majority wards have outperformed their remain counterparts.
‘I think this demonstrates the ‘get on with it’ attitude displayed in these areas whereby home buyers and sellers have been less phased about our EU future and this has helped to stimulate the market, bringing more positive house price growth as a result.’