0330 113 8333 0121 386 3344 Book a Free Valuation Login

Brexit: The Housing Market Aftermath

August 1, 2016

Erdington Station PictureWell it’s been 5 weeks since the Referendum vote and we have had a chance to reflect on the momentous decision that the British public took. Many of you read the article I wrote on the morning of the results. I had gone to bed the night before with a draft of my Remain article nicely all but finished, to be presented, at just after 5am, with the declaration by the BBC saying we were leaving the EU. I don’t think any of us were expecting that.

In this article I would like to take my thoughts on from that initial article and now start to see the clearer picture as the dust settles on the UK, but more importantly, the Erdington Property Market.

In case you weren’t aware, the residents of the Birmingham City Council area went against the National mood and voted as follows ..
Remain Votes 223,451 (49.6% of the vote)
Leave Votes 227,251 (50.4% of the vote)
Turnout 63.7%

I have been reading there is some evidence to indicate younger voters were vastly more likely to vote Remain than their parents and grandparents and, whilst the polling industry’s techniques may have been widely criticised, following them getting both the 2010 General Election and the recent Brexit vote wrong, anecdotally, many surveys seem to suggest there was a relationship between age and likelihood to support leaving the EU.

Interestingly, the average age of an Erdington resident is 35.3 years old, which is below the national average of 39.3, which might go someway to back up the way Erdington voted? What I do know is that putting aside whether you were a remain or leave voter, the vote to leave has, and will, create uncertainty and the last thing the British property market needs is uncertainty (because as with previous episodes of uncertainty in the UK economy – UK house prices have tended to go down).

Interestingly, when we look at the Homeownership rates in the Birmingham City Council area, of the 230,543 properties that are owned in the Birmingham City Council area (Owned being owned outright, owned with a mortgage or shared ownership), the age range paints a noteworthy picture.
Age 16 to 34 homeowners 29,370 or 12.7% (Nationally 9.6%)
Age 35 to 49 homeowners 72,257 or 31.3% (Nationally 29.2%)
Age 50 to 64 homeowners 65,305 or 28.3% (Nationally 30.7%)
Aged 65+ homeowners 63,611 or 27.6% (Nationally 30.5%)

So, looking at these figures, and the high proportion of older homeowners, you might think all the Birmingham City Council area homeowners would vote Remain to keep house prices stable and younger people would vote out so house prices come down- so they could afford to buy?

But there’s a risk in oversimplifying this. The sample of the polling firms are in the thousands whilst the country voted in its millions. Other demographic influences have been at play in the way people voted, as early evidence is starting to suggest that class, level of education, the levels of immigration and ethnic diversity had an influence on the way the various parts of the UK voted.

So what I suggest is this – Don’t assume everyone over the age of 50 voted ‘Leave’ and don’t assume most 20 somethings backed ‘Remain’; because many didn’t!

Henley Charles - Birmingham’s very own online estate agent © 2017. All rights reserved. Design by WOOBRO

Henley Charles Estate Agents is rated 1.00 stars by Reviews.co.uk based on 5 merchant reviews

1.00 / 5 Rating
5 Reviews
Very rude and have a habit of not replying. Have seen personal info of clients too. Very unprofessional and ill-mannered. How they received an award is beyond me.
Very bad customer service.
dismayed to see private client details just left out on tables at the front of the office.