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March 27, 2017
6 minute read
According to the annual Homeowner survey conducted by YouGov for HomeOwners Alliance and BLP Insurance, more than 1 million UK adults[1] have shelved plans to purchase a new property because of the vote to leave the European Union.
The referendum result is just one of a number of factors leading increasing numbers of British homeowners to stay put rather than move property. The research found that over 7.5 million UK adults have put off plans to move this this year.[2]
In addition to the perennial challenges around rising house prices (26%), increasing cost of living (25%) and difficulty securing a mortgage or re-mortgaging (25%), almost one in six (15%) of those who stated that they had put plans to move on hold said that the Brexit vote was behind their decision. Those in the North East (27%) and Northern Ireland (21%) were the most likely to have cancelled plans to move.
Commenting on the figures, Paula Higgins, Chief Executive of the HomeOwners Alliance said: “Our research demonstrates that both first-time buyers and those who already own a home are choosing to play it safe in these uncertain times. With the government preparing to trigger Article 50 this week, we can expect further uncertainty in the market until the UK’s future relationship with Europe is more clearly defined. People putting off plans to buy or sell chokes housing supply and generates pent up demand. The housing market needs certainty in order to be able to function most efficiently.”
“The government could help to ameliorate the situation, by looking again at stamp duty. It remains stubbornly high and acts as a drag on the market. Reducing the burden for genuine owner-occupiers could really help to keep the market moving in these uncertain times.”
Commenting on the figures, Kim Vernau, Chief Executive Officer of BLP Insurance said: “We’re at a critical juncture for the UK property industry as we await further clarity around the terms of the UK’s exit from EU. Purchasing a new home is one of the biggest decisions that an individual is ever likely to undertake, and this is only compounded by the fact that average house prices are continuing on their upward trajectory. It’s therefore not surprising that many people are putting their housing ambitions on hold amidst the prevailing uncertainty.”
Figure 1: Change in Plans To Buy or Move In Past Year (By Homeownership, Demographic Group, Region)
Figure 2: Reasons For Change in Buying/ Moving Plans
| Reason | % less likely to buy/move | % more likely to buy/move |
|---|---|---|
| House prices rising | 26 | 12 |
| Rising cost of living (i.e. prices rising) | 25 | 9 |
| Difficulty/ ability getting mortgage/ remortgage | 25 | 16 |
| Needs have changed (no need now) | 24 | n/a |
| Economy (i.e. outlook for jobs and wages) | 21 | 8 |
| Ability to find suitable housing | 16 | 14 |
| Brexit/ vote to leave European Union | 15 | 7 |
| Interest rates expected to rise | 12 | 6 |
| Stress/ upheaval of moving | 12 | n/a |
| Stamp duty costs more expensive | 9 | 2 |
| Interest rates expected to fall | 3 | 3 |
| House prices falling | 2 | 4 |
| Stamp duty costs more affordable | 2 | 1 |
| Falling cost of living (i.e. prices falling) | 1 | – |
| Need more space | n/a | 28 |
| Want to downsize | n/a | 15 |
| Other | 12 | 24 |
| Don’t know | 7 | 6 |
[1] See footnote 2 below. Of those respondents who said they were less likely to buy or move, 14.69% say Brexit is a reason = 7,541,723 x 14.69% = 1,153,884
[2] 15.3% of respondents said that they were less likely to buy or move this year. 15.3% of 51,339,161 UK adults = 7,541,723
3 Of those respondents who said they were less likely to buy or move, 8.61% say stamp duty is a reason = 7,541,723 x 8.61% = 649,342
October 30, 2024 
