Reapit research has found that UK property transactions have plummeted by a third in the past three months as Brexit uncertainty weighs on the market.
Reapit, the leading software platform for estate agents, compared its most recent three months of sales data with the five-year average for the same November-January period in order to gauge the impact of uncertainty on the property market across its measurable metrics.
By analysing data from thousands of estate agents’ offices, it found strong indicators of a stalled market across the board. Every data point was down on the five-year average, from the initial market appraisals, which are carried out by agents to give a likely asking price and property marketing strategy, through to exchange of contracts and ultimate sale.
Key results from the Reapit research are:
- The average number of exchanges recorded per estate agent office dropped by 36% when compared to the long-term average
- Properties under offer were down 8% on the long-term average
- Instructions of new properties were down 10%
- Viewings of properties were down 5%
- Market appraisals of properties were down 2.5%
Gary Barker, CEO of Reapit, commenting on the data said: “Although house prices remain reasonably resilient, our research sheds light on the extent to which Brexit uncertainty has affected property transactions in the past three months. Our data reveal that property sales per estate agent have dropped by a third when compared to the long-term average.
“This 36% drop in sales represents an unprecedented five-year November-January low. It’s doubly concerning for estate agents because seasonally, this is a quieter period for transactions compared to the summer months.
“It’s fair to say that the housing market is holding its breath as we await the Brexit outcome. Nobody wants to risk being on the wrong side of a potential house price crash, so the market sentiment is to wait and see.
“There is a silver lining we can be more confident about: once we have clarity, the pent-up demand of people waiting to buy, and supply of people waiting to sell, will see an upswing in activity for the housing industry. Regardless of politics, life goes on and people need to move homes. Agents need to be prepared when the floodgates are opened.”