As the UK marks ten years since its landmark vote to leave the European Union, a stark reality emerges: nearly half of Britons believe Brexit has damaged the nation's housing market. A recent study by specialist mortgage lender Together reveals that 50% of respondents feel some level of harm, while just 24% see a positive impact – a stark contrast to pre-referendum predictions that a Leave vote would boost the property industry.
Regional opinions vary significantly, with Scots most likely (47%) and Londoners least likely (19%) to view Brexit positively. The North East and North West of England also harbour concerns, with 37% and 33% respectively attributing significant harm to Brexit. While the pandemic, inflation, and interest rate hikes have undoubtedly contributed to market challenges, many respondents pinpoint Brexit as a key driver of economic uncertainty – and its knock-on effects on housing demand and development activity.
Scott Clay, a director at Together, acknowledges the difficulty in isolating Brexit's impact from other significant events. However, he highlights that for many households, higher borrowing costs and increased affordability pressures have been the harsh reality. The introduction of new trade barriers and supply chain friction has also directly impacted new build costs, while reduced EU construction workers threaten to derail government targets – including building 1.5 million homes by 2029.
Despite initial predictions of a market crash, overall UK property prices have remained relatively stable, albeit with London experiencing a cooling market due to declining international buyers and EU nationals. Some developers and investors are now exploring regions like the North and Midlands for better value – but the long-term health of the housing market remains uncertain, leaving many to wonder if Brexit's influence will persist in years to come.