Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Brexit’s Impact on UK Housing Market Remains Divisive After Ten Years

A decade after the UK voted to leave the European Union, the property industry remains divided over Brexit’s impact on the housing market. New research indicates that half of Britons believe Brexit has harmed the UK housing market to some degree.

The report from Property Industry Eye highlights ongoing debate among estate agents, developers, and investors about whether the market would be stronger if the UK had remained in the EU. Supporters of Brexit argue that recent challenges in the housing sector have been driven by global events such as the pandemic, inflation, and higher interest rates. Critics, however, point to Brexit’s effects on economic growth, investment, and consumer confidence, which they say have influenced housing demand and development activity.

Research from specialist mortgage lender Together found that 50% of Britons believe Brexit has harmed the housing market, while 24% think it has had a positive impact. More than a quarter (28%) said Brexit had harmed the market “a lot”, and 22% said it had harmed it “a little”. Only 9% said Brexit had significantly improved the market, with another 14% saying it had helped to a lesser extent.

The findings come amid ongoing affordability pressures, elevated borrowing costs, and wider economic uncertainty, all of which continue to influence housing market sentiment. Regional differences were also noted: respondents in Scotland were the most likely to believe Brexit had significantly harmed the housing market (47%), followed by those in the North East (37%) and North West of England (33%). In contrast, only 19% of Londoners believed Brexit had helped the housing market, with the figure falling to 11% in the West Midlands.

The report also notes that Brexit introduced new trade barriers, supply chain friction, and a reduction in EU construction workers, which have affected the costs and viability of new housing developments. These factors, along with increased regulatory requirements, may have contributed to ongoing concerns about economic stability and reduced consumer confidence in the sector.

While overall UK property prices have remained relatively stable, the report states that London has seen cooling due to a drop in international buyers and EU nationals. This has led some developers, investors, and home buyers to look to the North and Midlands for better value.