How An EU Exit Could Affect the UK Property Market
With the referendum only a few days away there is very little else on people’s minds currently in respect of the housing market. If the UK does decide to leave the EU what effect could this have on the price of property?
Well, whilst we at Jones Robinson are unfortunately unable to predict the future, we do have our ears to the ground and are listening to all of the rumblings from both camps.
We are being told by those in the Vote Leave camp that a vote for them will have positive repercussions for first time buyers as the potential for reduced priced houses will make the housing ladder more accessible. Whilst this may be the case, it is worth noting that mortgages could become that much harder to come by during a period of economic instability.
Vote Remain are adamant that house prices will drop should the Vote Leavers have their way. According to George Osborne, during a recent conversation with the BBC, it was suggested that “UK house prices could drop anywhere between 10% and 18% in the two years following an EU exit”.
He stated that “in the long term, the country and the people in the country are going to be poorer. That affects the value of people’s homes…and at the same time, first-time buyers are hit because mortgage rates go up, and mortgages become more difficult to get. So it’s a lose-lose situation.”
The governor of the Bank of England, Mark Carney states that a vote to leave “could possibly include a technical recession”.
There has been a noticeable slowing down in the market in West Berkshire over the last couple of months whilst people wait with bated breath to see what the future holds. According to the Royal Institute of Chartered Surveyors the number of homes for sale had declined more widely than at any time since it started collecting data in April 1999.
Whilst no-one knows exactly what the future holds, whatever happens there will definitely be some movement in house prices whether up or down, the same with mortgages, overseas investment, the Private Rented Sector and so on. If you are in a position where you need to sell your property or are in the market to buy a new one then whilst we understand that you would be warily waiting, ultimately the world will need to go on.
Should you wish to discuss anything that you have read in this post or indeed anything to do with the housing market, please call us on 01635 35010.