New research has revealed that mortgage sales have plummeted following the decision to leave the EU.
According to Equifax, mortgage sales have fallen 15.7% – or £2.5 billion – in the last month. Year-on-year, sales are down 16.6% (£2.7 billion).
Residential mortgage sales fell by 15.8% (£2.1 billion) on June, while buy-to-let sales dropped by 15.2% (£0.4 billion). Year-on-year residential sales were down 9.7% (£1.2 billion) while buy-to-let sales tumbled by 39.1% (£1.5 billion).
Total mortgage sales fell in every region of the UK – with Northern Ireland (-28.7%) and Scotland (-21.5%) showing the sharpest falls. London dropped by -13.5%.
The average value for buy-to-let mortgages has also fallen in the last year, down from £160,203 to £157,195. The average value of residential mortgages in July was £188,053 compared to £186,897 in July 2015.
Iain Hill, relationship manager at Equifax Touchstone, said: “Following Brexit, the UK housing market has been on tenterhooks, waiting to see how hard property buyers’ confidence has been hit. It’s important to remember that the summer period traditionally brings a dip in mortgage sale volumes during July and August, so it will be many months before the full effect of Brexit is uncovered.
“We’re confident that the market will bounce-back longer-term, with negativity likely to be offset by the recent interest rate cut, leading to lower and more competitive rates from lender.”
Total mortgage sales by region
| Regional area | Total mortgage sales in July |
| Northern Ireland | – 28.7% |
| Scotland | -21.5% |
| Home Counties | -18.9% |
| South Coast | -17.5% |
| South West | -16.5% |
| Midlands | -15.1% |
| South East | -14.2% |
| London | -13.5% |
| North East | -12.8% |
| North and Yorkshire | -12.5% |
| Wales | -10.1% |
| North West | -7.6% |
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