Transactions slips as market ‘holds its breath’ in run-up to Brexit

Fresh evidence of an activity slump in Britain’s housing market has been brought to light this morning, with new data showing a sharp drop in property transactions during the last three months.

The average number of sales recorded by estate agents in November to January were 36 per cent lower than the long-term average, as uncertainty over Britain’s imminent departure from the EU weighs on buyer and seller confidence.

The figures, produced by software platform Reapit, also found that property viewing dipped five per cent during the three months, while properties under offer were eight per cent lower than the long-term average.

“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,” according to Gary Barker, chief executive of Reapit.

Barker added: "This 36 per cent 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."