House listings mount after the Brexit vote
The number of homes on the market has increased since the EU referendum, but prices have fallen, according to analysis by Jefferies bank.
In London, there has been an increase in home listings in 76 per cent of postcodes. However, asking prices have fallen in 70 per cent of postcodes since the Brexit vote. In the UK as a whole, 34.8 per cent of homes on the market have had a price reduction, which is up from 29.3 per cent at the beginning of July.
Read more: Everything you need to know about house prices since the Brexit vote
Jefferies said that the “UK housing market is open for business” and that listings have increased by 3.6 per cent since the 1 July. However, some estate agent branches may have to close, Jefferies said; since the EU referendum, share prices in UK estate agents have fallen by about 30 per cent.
The data follows from research conducted by property portal Zoopla, which found house prices are being cut by nearly 10 per cent in some parts of London.
In Kensington and Chelsea, more than one in three homes advertised – 35.2 per cent – have had a price cut, with reductions averaging 9.2 per cent.
Peter Wetherell, chief executive of Mayfair estate agent Wetherell, said the firm has more properties on its books now than at any time since 1988.
Read more: House prices are being cut by nearly 10 per cent in some parts of London
However, he said this was partly because there was more supply than demand, and that the London housing market has been cooling down this year, with volumes down by about 50 per cent as compared to the levels achieved by estate agents in 2013.
The level of transaction volumes in the UK will not be known for some time; the most recent data from the Land Registry – the best source of transaction data – is from March.
The introduction of a higher stamp duty rate for people buying second homes has also suppressed activity. Wetherell said the government may reconsider its position when transaction data is available and it can assess whether the Treasury has benefited from the introduction of the tax.