The number of house buyers looking to buy new homes has fallen to its lowest demand in three years, according to the latest research by estate agents.
In July, the number of house hunters registered per member branch dropped to an average of 298, down from 330 in June, according to the National Association of Estate Agents (NAEA).
This is a third lower than July last year, when 462 prospective buyers were registered per branch.
The amount of sales to first time buyers also saw a drop, decreasing by five per cent from 30% in June to 25% in July, suggesting the slowdown affect Brexit is having on the property market.
Last month however, eight out of the ten properties sold per member branch were for less than the original asking price, an increase of 8% from June.
Mark Hayward, managing director, NAEA, says: “We expected to see uncertainty in the immediate period following Brexit and during the summer months the market always quietens down.
“We are optimistic that the housing market will spring back into full swing in the coming months.”
Although the vote to leave the European Union sparked fears over the growth of the property market, many estate agents have reported business remains as usual.
A third of estate agents said that there have been no changed in the housing market since Brexit, and a further third of agents said that the interest from forging investors has remained the same.
The Royal Institute of Chartered Surveyors (Rics) also reported this month that the confidence in the UK’s housing market has become more “resilient” than many expected after Brexit.
However, it was also recently announced that house prices are expected to fall by 1% in 2017 after a weakening economy in the second half of this year.
Leading estate agent Countrywide said the housing market will be affected by the Brexit vote, along with reduced household spending and rising unemployment across the country.