After months of debate and uncertainty, Britain has decided to leave the European Union. In the months leading up to the referendum there seemed to be a bit of a slowdown in property transactions as many seemed cautious. But now the decision has been made, how will the UK property market fare?
In the run up to the vote there were many apocalyptic predictions on house prices falling drastically by as much as 18% if we decided to leave. However, since the referendum, predictions have been much more modest and seem to hover around the 5% mark.
The general consensus among property experts seems to be that it’s likely the property market will see a small decline in activity. Some vendors may decide to delay their decision as they wait and see what the effects are over the next few months. While this drop in activity is bound to have some effect on the market, the chances of the market collapsing on itself are still very slim.
Plenty of experts have thrown their opinions into the mix, with most claiming a short term shake up, but a relatively quick return to the norm and a strong outlook on the market long-term.
Spicerhaart, Chief Executive, Paul Smith was one of many that claims Britain’s property market will see long term stability, he stated “In the short-term, things could be turbulent as people come to terms with a result that wasn’t expected. But we now have some certainty. House prices may go up and down as they always have, but demand pressures will sustain prices over the long-term. We’re on course to see the greatest investment since the war, and residential property continue to pay off for home owners.”
There have been various predictions for the capital, some predicting it to be the region hit the hardest by any falls in value and some expecting London to remain as it is. CEO of eMoov, Russell Quirk is a believer in the latter theory stating that "The London market, as always, is likely to remain in its own impervious bubble despite the choice for Britain to leave. We’ve seen a few market wobbles since the results were announced, but they already seem to be starting to stabilise.”
Some industry experts have even suggested that we may see a short-term rise in activity, with the Brexit’s effect on the pound, the interest from overseas could grow, especially in areas such as London as stated by member of the National Association of Estate Agents, Jonathan Hudson “this exit vote could reignite interest from overseas buyers from Asia, who would see greater value back in the London market if the pound continues to weaken."
So where does this leave you if you’re considering making a move? Well, that depends on the move you’re looking to make. Mortgage advisers and property experts have suggested that if you’re buying a long-term home and have already saved up a strong deposit, then you shouldn’t let the recent change hold you back from making a move. However, if you’re planning a buy to let purchase, it may be beneficial to see how things play out over the coming weeks.
Overall, predictions are mixed on exactly how the market will react to Brexit. With there being almost too many factors to take into consideration, it’s hard to say with any true certainty whether prices will rise or fall. However, one thing that is certain is that the market will go on, and while there may be a quiet period now the decision has been made, it does not change the fact that the demand for housing is as high as ever and there are always reasons why people need to buy and sell.
