Half of Britons believe Brexit has ultimately harmed the UK housing market, according to new research published on the tenth anniversary of the referendum.
The survey, commissioned by specialist lender Together, found that 50% of respondents believe leaving the European Union has had a negative impact on the housing sector, while just 24% believe it has helped.
More than a quarter (28%) said Brexit had harmed the housing market “a lot”, with a further 22% believing it had caused a smaller degree of damage.
In contrast, only 9% said Brexit had significantly improved the housing market, while 14% believed it had helped a little.
AFFORDABILITY PRESSURES
The findings come a decade after the UK voted to leave the European Union and reflect the continuing influence of affordability pressures, borrowing costs and wider economic uncertainty on public attitudes towards housing.
Regional differences were also evident. Respondents in Scotland were most likely to believe Brexit had significantly harmed the housing market, followed by those in the North East and North West of England.
By contrast, fewer respondents in London and the West Midlands felt Brexit had delivered a positive impact on housing.
The survey highlights how the events of the last decade continue to shape perceptions of the property market, even though experts acknowledge it is difficult to separate the impact of Brexit from other major economic events, including the pandemic, inflation and rising interest rates.
ECONOMIC STABILITY
Scott Clay (main picture, inset), Director at Together, says: “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, the reality for many households has been higher borrowing costs and greater affordability pressures.”
ONGOING CONCERNS
Clay says the development sector had also faced challenges linked to increased costs, supply chain disruption and labour shortages.
He adds: “These findings highlight ongoing concerns related to economic stability and raise the issue of reduced consumer confidence and investment hesitancy in the housing sector.
“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.”
