Brexit Voters More Confident About Selling, Buying Homes, Says Estate Agent
August 18 2016 - 1:59AM
Dow Jones News
By Olga Cotaga
LONDON--People from regions in the U.K. which voted in favor of
Britain leaving the European Union have been selling and buying
more homes since the June 23 referendum than those from areas that
opposed Brexit, estate agent haart said on Thursday.
From a sample of 20 branches, haart found that in the 'Leave'
regions there was a 1% rise in the number of property listings,
while in the 'Remain' areas there was a 6% fall in the number of
listed properties.
"The reality is that we have a property market heavily driven by
sentiment, and it's the confident Leavers who are currently keeping
the market afloat," said haart Chief Executive Paul Smith.
Haart owns over 100 branches across England. By comparison, peer
Countrywide PLC (CWD.LN) has more than 800 branches, while Foxtons
PLC (FOXT.LN) has a little more than 60 branches.
In Doncaster, where 69% voted to leave the EU, there was a 25%
rise in the number of listed homes since the referendum result, the
agency said. In Barnsley, where 68% voted for Brexit, fewer sales
fell through.
By contrast, in Bristol, where 62% of people opted for the U.K.
to stay in the bloc, there was a decline in activity across all
three haart branches, the agency said. In the pro-Remain London,
the number of new people interested in buying a home had fallen by
30%.
Almost all LSE-listed estate agencies and brokers, except
Savills PLC (SVS.LN), have warned on their full-year profit,
blaming the fall in property transactions in the aftermath of the
U.K. vote to leave the EU.
Savills, with 700 branches worldwide, makes half of its money
from non-transaction revenue. And only 41% of its income comes from
the U.K.
Jefferies said Monday that the number of homes for sale in the
U.K. rose 3.6% after the country voted to leave the EU, but that
the asking price shed 0.2%.
Listings are a good indicator for future housing transactions,
the brokerage house said.
More people have asked for a lower price on their home in the
wake of the referendum, but if selling prices slide too much,
sellers are going to start withdrawing their homes from the market,
said Jefferies.
Write to Olga Cotaga at olga.cotaga@wsj.com, Twitter
@OlgaCotaga
(END) Dow Jones Newswires
August 18, 2016 01:44 ET (05:44 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Countrywide (LSE:CWD)
Historical Stock Chart
From Apr 2024 to May 2024
Countrywide (LSE:CWD)
Historical Stock Chart
From May 2023 to May 2024