Countrywide warns Brexit uncertainty will lead to property slowdown in Q2

Listed real-estate agency Countrywide warned that it expected the housing market to slow down in the second quarter on the back of uncertainty over June's EU referendum.

In a trading statement, Countrywide said it had begun 2016 with real momentum as it saw acceleration in transactions on buy to let properties and second homes in response to the introduction of the government's new 3% stamp duty surcharge that became effective from April 1.

“We expect the housing market to slow in the second quarter post the surge in buy to let activity in the first quarter and reflecting challenges from the political and economic uncertainty in the lead up to the EU referendum in June,” the company said.

House exchanges across the group were ahead 30% compared to the same period last year when market transactions were depressed by concerns in the run up to the general election in May 2015.

That increase enhanced performance across the group and is reflected in the results of both financial services and business-to-business operations.

Chief executive Alison Platt said the company was “encouraged by the strong performance delivered in the first quarter and remain on track to pilot our customer focused multi-channel proposition in three brands during the second quarter”.

Platt also said the referendum would lead to a more circumspect approach in the second quarter.

"We are mindful of the political and economic uncertainty surrounding the EU referendum we are taking a cautious view of the coming months,” she said.

“Notwithstanding this, however, we continue to expect to make strong progress in 2016 as we execute our strategy and maximise market opportunities and therefore maintain our current financial outlook for the full year".