New homes listings hit by Brexit vote, says ESPC

Brexit has resulted in a stalling of properties being put on the market in the Lothians. Picture: TSPL
Brexit has resulted in a stalling of properties being put on the market in the Lothians. Picture: TSPL
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The ESPC has warned that the number of houses being put on the market in the Lothians has stalled as a result of the Brexit vote.

However, the organisation, which represents member solicitors in central eastern Scotland, said it believed the blip was “temporary” and that the market could already be beginning to improve.

The ESPC said it had witnessed a “significant dip” in the number of properties brought to the market, as well as a reduction in the number of Home Report requests. Requesting a Home Report on a property is usually the first step before someone puts their property up for sale.

However, it added that the first few days of July had been more buoyant.

ESPC’s business analyst Maria Botha-Lopez said: “In the weeks and months leading up to the referendum, there didn’t seem to be any clear effect of the campaign on the housing market, which was adjusting to the new Land and Buildings Transaction Tax (LBTT) supplemental tax.

“However, with the unexpected outcome, there was a dip in new properties for sale and Home Report requests the week after Brexit, but this appears to have been a temporary reaction as the number of new listings is beginning to build up again.”

She added: “It is still too soon to tell what the housing market in the post-Brexit landscape will look like, with immediate effects seeming to be a ‘wait and see’ or ‘wait for the dust to settle before proceeding’ for those who were not already in the middle of a property transaction. There have been very few reports of buyers or sellers pulling out of transactions, with most proceeding as planned.”

Last week, Paul Hilton, chief executive of the ESPC, warned that there could be “more caution” around the property market in the comijng months as a result of the decision to leave the European Union.

Sales volumes were severely hit during the financial crisis of 2007/8, with the “offers over” sealed bid system almost entirely disappearing from the market as buyers shied away from investing in a new home.

The latest report showed that average selling prices across east central Scotland have increased by 6.3 per cent year on year, with the median selling time 43.3 per cent faster when compared to the same three month period a year ago.