A decade after the UK voted to leave the European Union, research from Together - the specialist mortgage lender - finds half of Brits (50%) believe Brexit has ultimately harmed the housing market to some extent.
Indeed, affordability pressures, higher costs and higher interest rates for potential buyers and wider economic and geo-political concerns continue to shape public opinion.
According to research from Together - more respondents believe Brexit has harmed the UK housing market than helped it:
- While almost a third (28%) believe Brexit harmed a lot, a fifth (22%) believe it harmed a little
- Just a quarter (24%) of respondents think Brexit ultimately helped the UK housing market
- 9% believe that it actually significantly improved the UK housing market - with 14% believing it only helped a little
- Those in Scotland (47%), North East (37%) and North West of England (33%) said Brexit harmed the UK housing market a lot - just 19% of Londoners and 11% of those in the West Midlands thought it helped boost the UK housing market
Scott Clay, a director at property lender Together said: "Ten years after the Brexit vote, many consumers continue to associate the period with economic uncertainty, and that is often reflected in attitudes towards the housing market.
“While it's difficult to isolate Brexit from other major events we've experienced over the past decade, including the pandemic, inflation surge and rapid increases in interest rates, and, more recently, tensions in Iran cooling buyer confidence - the reality for many households has been higher borrowing costs and greater affordability pressures over the past decade.
“In terms of development, Brexit introduced new trade barriers, supply chain friction – directly affecting the costs of new builds - and a reduction in EU construction workers. These factors, coupled with more recent increases in red tape, may have hampered the viability of many housing developments, with continued weak demand threatening the Government's target of building 1.5 million homes by 2029. These findings highlight ongoing concerns related to economic stability and raise the issue of reduced consumer confidence and investment hesitancy in the housing sector.
“While overall UK property prices have remained relatively stable, defying doom predictions that the market would crash post-Brexit, London in particular has seen cooling due to a drop in international buyers and EU nationals. This has led many developers, investors and home buyers to look to the North and Midlands for better value.
“Over the last year, mortgage rates have become more stable and lenders are continuing to support borrowers with a wider range of flexible products. Ultimately, the long-term health of the housing market will depend on affordability, housing supply and economic confidence. Those are the factors that will have the greatest impact on homeownership opportunities over the next decade.”
