Brexit We’re out! But what does it mean for the property market
It has been near on impossible not to get dragged into the hype and debates that have surrounded the EU Referendum over the last few months…the voting is now done and the UK is out of the European Union. But what does this mean for the property market in our area?
Prior to the vote, it was predicted by economists that if the UK did ‘Brexit’ that it would spell an economic disaster for homeowners with a continued slump in house prices driven by falling demand for properties if many foreign nationals who live in the UK had to leave as a result of stricter immigration laws.
The big caveat to bear in mind is that these views are based on big assumptions. With 25 years of experience under our belts which has seen some real ups and downs in the economy and the property market, we believe that property prices are really based on confidence in the market which is very difficult for economists to predict.
property-market_michael-jonesGeorge Osborne, the Chancellor, warned that house prices could fall by as much as 18% in the event that British people voted to leave the EU but that calculation was based on today’s house prices, rather than the prices in two years’ time, which are forecast to be 10% higher than they are today, meaning that the worst case scenario would have been an 8% decline in house prices, according to the Treasury.
So what does leaving mean for UK homeowners?
House in HandsSome economists believe that house prices are currently above sustainable levels in relation to disposable income and that price declines would result in house prices falling towards a more sustainable level which would benefit first time buyers. Investment buyers could also take advantage of a slowdown in house price inflation to counteract the impact of recent stamp duty increases that were implemented in the Spring.
Brexit could spell good news for sellers too as the period of uncertainty following the vote to leave may result in homeowners delaying the sale of their property to take stock of the economic environment. This combined with a continued increase in buyers looking for suitable properties means that demand for properties like yours will be high.
Do you know what your property is worth?
If you are thinking of selling or would just like to know what your property is currently worth, you can click below to either receive an instant free online valuation of your property in the next few seconds or we can arrange for one of our local, experienced agents to come round and provide an expert valuation of your home.
If you have any questions about the property market in our area or would like further advice on selling your home, we would be happy to help.
We have sold more houses than any other agent in our area over the last year so know a thing or two about the local market. Click HERE to contact your local office.
Content accurate at time of publishing.