As part of our State of the Property Nation survey analysis, we uncover the impact Brexit has had on the property industry across the UK and the market conditions estate and letting agents can expect to encounter going forward.
As a positive Brexit deal wavers, so too has consumer confidence in the economy, with the research showing an 11% decline in 2017 on 2016. This is largely attributed to uncertainty about Brexit. The net result of this has been a 10% fall in the number of home movers in the market. Women, those living in the north of England and those aged over 45 have expressed the largest decline in confidence in the economic outlook.
Thankfully, it’s not all bad news.
31% of survey respondents remain positive about the economy and over half of all respondents are feeling increasingly optimistic about their own personal economic situation for the year ahead. While this is helped by falling borrowing costs with mortgage interest rates at a low base, it’s clear that survey respondents are exercising increased control over their own personal financial situations.
This picture emerges through consumer decisions to reduce and manage spending, indicating people are taking clear actions to improve their personal financial situation. Consumers are more cautious over large purchases, with 28% putting off buying big ticket items like holidays and car purchases. This cautious sentiment has also resulted in over a fifth of property buyers dropping out of the property market in 2017, so the pool of buyers has shrunk despite the transaction volume holding up nationally.
However, the report has uncovered that whilst consumers are more realistic about the things they buy, they are seeking out more value for their money, indicating agents will need to think about how they can increase their perceived value. Survey respondents did express a higher likelihood to try new things if they are cheaper, so cost and value will be top priority for consumers for the year ahead.
The report details how agents across the nation are responding to these Brexit-driven challenges and uncovers how market conditions are changing the face of the industry.