Ten years after the UK voted to leave the European Union, half of Britons believe Brexit has had a negative impact on the housing market, according to new research from specialist lender Together.
The study found that 50% of respondents believe Brexit has harmed the UK housing market to some extent, while only 24% think it has had a positive effect.
More than a quarter of those surveyed (28%) said Brexit had harmed the market significantly, while a further 22% felt it had caused a smaller degree of damage. In contrast, 9% said Brexit had significantly improved the housing market and 14% believed it had helped a little.
Regional differences were also evident. Respondents in Scotland were the most likely to say Brexit had harmed the housing market significantly, with 47% holding that view. This was followed by the North East of England at 37% and the North West at 33%.
Londoners were less likely to view Brexit positively, with only 19% saying it had helped the housing market. In the West Midlands, just 11% believed Brexit had boosted housing market performance.
Scott Clay, director at 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.”
The findings suggest that concerns around affordability, borrowing costs and wider economic uncertainty continue to influence public perceptions of Brexit’s impact on housing, despite the resilience shown by property prices in many parts of the UK over the past decade.
