No Deal Brexit: What Impact On Property Market
It would be fair to say that even though Brexit hasn’t happened yet, it has had an enormous impact on the UK property market. As of October 2018, it isn’t possible to say how much impact that Brexit will have on house prices, because there are many factors shaping the property market and prices.
However, it is fair to say that uncertainty impacts on the property market, and most people would readily agree that there is a lot of uncertainty surrounding Brexit. In the past five years, there have been several major political events in the UK, and the uncertainty surrounding all these events has negatively impacted on the market.
Uncertainty slows down the British property market
Examples of instances that have impacted on the property market and house prices include:
- The lead-up to the Scottish Independence Referendum of 2014
- The build-up to the General Election of 2015
- The time leading to the European Union Referendum of 2016
While there was a notable stopping point for the first two matters, the outcome of the European Union Referendum has created more uncertainty, and this is a significant reason as to why the market has stalled in the past two years.
People need guidance and information as to what is going to happen
No matter what your thoughts on Brexit are or what your political persuasion is, you would agree that more certainty on what will happen will help people decide with respect to property.
It is looking increasingly likely that a No Deal Brexit will come into play. This has led some organisations to make big claims as to what will happen with respect to house prices. The Bank of England stated that if a No Deal Brexit occurs, there could be a notable fall in the price of houses in the next three years.
Bad news for someone is likely to be positive news for other people
It should be noted that the Bank of England isn’t always correct when it comes to property market predictions. There is also the fact that bad news for some people in the property market will lead to positive news for other people. After all, if house prices fall, a vendor will receive less money when selling their home, but they will find that when buying property, they pay less money.
If a vendor is planning to upsize on their property, they will find that they can make the most of their money. There is also the fact that first-time buyers will be delighted about a fall in house prices. There has long been an element of the market who suggest that a fall in house prices would be of benefit to the market, so no matter what happens, there will be a difference of opinions.
However, until something does happen or there is a better idea as to what is going to happen next in the property market, uncertainty will continue to bog down the market. This cannot go on forever and you will find that many people are looking to sell their home or buy property.
If you are looking to sell your home, it makes sense to work with an expert. I am pleased to say I have worked with many vendors and have helped them sell their home. I know the Brixton and surrounding areas very well, and I look forward to assisting you to sell your home.
CEO, Kings Accommodation