Brexit has been on the lips of everyone amongst the nation for months and rightfully so, with news outlets giving us new updates on the deal every day, with the most recent being the EU giving the UK until the 12th of April to make a decision or leave with no deal.
Whether you voted to leave the EU or remain, Brexit is set to change the way the UK will function, including the economy, health care and the property market. Therefore, how will leaving the European Union affect our housing and lettings?
In 2018, the housing market was dubbed as subdued and many buying and selling deals took a lot longer to get over the line. With the original deadline of Brexit being the 29th of March, many sellers postponed selling for fear of how leaving the EU could affect their housing prices and lots of buyers waited to continue their search for a new property because the costs could drop. The uncertainty of Brexit has already caused quite a big stir among the housing market with everyone still holding off until things become a bit more clear.
It seems that leaving with ‘no deal’ is the worst possible outcome for the property market.
If Brexit ended in a ‘no deal’ scenario or the situation was considered ‘disorderly’ than houses are looking to fall by 30% from their original prices. However, if there is a ‘disruptive’ exit then properties are still predicted to fall by at least 17%. Ever since the referendum, the property market has been considered stagnant.
Nevertheless, it is hard to predict exactly how Brexit will affect the property market, especially as the whole ordeal is still up in the air. Leaving the EU could also affect those who have investments in property outside the United Kingdom.
Although many buyers and sellers have halted their moving or selling because of their fears, many agree that even if you do purchase a house during this period and the price decreases after Brexit, the market should balance back out in a few years. This means the price of your house may return to its original value again. However, there are lots of other factors that can affect the housing market, like supply and demand, interest rates and inflation. Therefore, the headlines are thought to be much more doomsday, than the reality of the situation.
It is thought that when property owners know what is going on with Brexit and the effect it will have on the market, then there will be a flurry of buyers and sellers continuing with their deals and putting their houses up for sale.
First Time BuyersAlthough the past year hasn’t been that busy in terms of buying and selling in the property market, there has still been a steady stream of first time buyers purchasing their first homes. A potential drop in the market, may help first time buyers get on the property ladder on a better rung. Buyers may be able to buy properties at a better price and get a bigger property at a much cheaper cost.