12 Jul

Brexit impacts on prime property

Brexit impacts on prime property

The debate surrounding the vote on EU membership did have an impact on the country’s housing market, according to new data,

Figures from Knight Frank show prime country house prices fell by 0.2 per cent between April and June as the market saw a period of uncertainty.

Over the previous 12 months price growth to the end of June was 1.3 per cent - down from the 5.2 per cent reported in 2014.

However, the decline in prices over the last quarter was the first of its kind since the end of 2012 and saw values for homes worth more than £2 million see an annual growth of 0.7 per cent.

The slowdown is thought to be linked to the Brexit vote with potential buyers performing to wait until the result of the referendum, with the number of viewings down by ten per cent.

However, there are some concerns that other factors could have also played a role in the fall of demand.

"Higher purchase costs as a result of two stamp duty increases in the space of 18 months have also had an impact, weighing on price growth in some sectors of the market, most notably for homes valued in excess of £2 million," said Knight Frank associate Oliver Knight.

He added there is likely to be further uncertainty as the UK government moves forward with the country’s exit from EU and buyers wait to assess the implications.ADNFCR-1222-ID-801821636-ADNFCR

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