House price rises linked to Remain vote in Camden
PUBLISHED: 12:13 08 July 2016 | UPDATED: 17:00 08 July 2016
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Strongly Remain-voting areas such as Camden experienced far higher house price growth over the past five years than areas that voted for Brexit, according to a report.
Property prices in Camden, where 75 per cent of residents voted to remain in the EU, went up 35 per cent between April 2011 and April 2016, hitting £872,369 according to research by online estate agent HouseSimple.com.
Hackney has seen a stratospheric house price growth of 62 per cent over the past five years and the borough had the second highest remain vote (78 per cent) in the country.
In contrast, the report found house prices in areas with the highest Brexit vote actually fell.
House prices in Burnley in Lancashire where 67 per cent of the population voted for Brexit fell by eight per cent over the same period to £72,584. In Hartlepool, where 70 per cent of residents were Brexiteers, prices fell five per cent to £97,554.
The report highlights the gulf between different parts of the country exposed by the referendum result.
Areas that experienced generally strong economic growth and personal wealth accumulation as a result of soaring house prices over the past five years voted in favour of the EU, while those in economically depressed areas with limited or negative house price change tended to vote against.
Although London’s five Brexit boroughs experienced some of the lowest property price inflation in the city, house price rises in each were still more than three times higher the average in areas that voted to leave the EU outside the capital.
Bexley, where there was a 63 per cent leave majority, saw prices rise 30 per cent, compared to the average nine per cent rise in leave areas nationally and 18 per cent rise in remain voting areas throughout the UK.
Alex Gosling, CEO of HouseSimple.com said: “Areas with a strong Brexit vote are the areas that have seen less growth in property prices over the past five years.
“Of course it’s not cause and effect but it’s sure to have had some influence on voters’ decisions last week. And as we saw in the voting, the country is also divided when it comes to property growth.
“Many areas of the country, particularly in the North, haven’t enjoyed the boom times since 2011 experienced in London, which voted strongly to remain in the EU.”
Following the referendum result, the strong house price growth in some areas looks set to reverse, at least in the short term, with experts predicting that London house prices will fall at least 10 per cent by Christmas.