BREXIT AND THE HOUSING MARKET
14 March 2019
Brexit has dominated the news since the referendum was first announced in February 2016 with many articles written full of pros and cons on both sides regarding what will happen in post-Brexit Britain.
Even now, mere weeks from the date Brexit is due to come into effect, experts are divided as to how the housing market will be affected. Some experts say it is only the market correcting itself whilst others believe it is the state of things to come with house prices down on average by 5% across the UK and in some areas more.
One thing experts are in agreement with is that due to the uncertainty of whether there is a deal or not for leaving Europe, the market will continue to fluctuate.
Although many areas in the UK are seeing a dip in sales, overall there was a slight increase in sales in January compared to last year.
Due to the uncertainty the number of transactions has reduced as buyers are more wary about entering into mortgages on fixed terms and with advisers unable to give advice on how the market will react buyers have little to rely on other than public opinion.
Also, with reports saying MPs could back a second referendum, this could further affect the housing market on the run up to any potential referendum as the uncertainty could possibly make both sellers and buyers think twice about delaying moves until after the result is known.
The housing market looks steady and there will always be an increase where employment remains high. Furthermore since the financial crisis the Bank of England kept the interest rates at 0.5 and then lowered them to 0.25 per cent in 2016, as a result debt has been low and homes have been made affordable for first time buyers and for those who want to invest.
While no one can predict the future, the experts all come to the same conclusion: keep calm and carry on.