What effect will Brexit have?
There are too many factors which can shape the property market in the next few months
It would be fair to say many people are keen to know what impact Brexit will have on our lives. At this point, it still can’t be said for certain what sort of Brexit we will experience, or even if Brexit will still happen or not.
There is enough evidence to suggest that uncertainty stifles movement in the property market. There have been many periods of political uncertainty in the past five years and all these periods have led to the housing market slowing down. There are many factors influencing the property market, with a shortage of houses being supplied a major issue to consider in the market, but when people don’t feel confident as to what will happen with respect to jobs and the economy, how can you expect these people to make massive decisions regarding their home and future.
The Bank of England issued major concerns about the post-Brexit property market
As you would expect, there are many different opinions on what will happen surrounding Brexit and property values. The Governor of the Bank of England, Mark Carney, issues a warning in September of 2018 that a No-Deal Brexit could see house prices falling by a third. Of course, many people point out that the Bank of England will inform people of the worst-case scenario but they may also make announcements in an attempt to influence decision-makers.
Therefore, not everyone has such a negative outlook with respect to what will happen to the market. Figures provided by UK Finance suggest that mortgage approvals in December 2018 increased on their December 2017 counterparts. This has led some professionals to argue that the impending Brexit has led some people to make a move in the market in case it is better to do so now than in the future. Chris Norris is a director of policy and practice at the National Landlords Association (NLA), and he released a statement, saying; “It is still too early to predict what impact Brexit will have on property values. A weakening of the appeal of UK investment could drive prices down or a lack of certainty could drive up interest in the relative stability of bricks and mortar. Likewise, changes to immigration policy could reduce demand from those coming to the UK, or drive up interest from those taking advantage of new arrangements with states outside the EU.” While these points are directed at landlords, it is clear that the influence on the property market will be telling too. There are factors which could lead to house prices rising or falling, so it is still extremely difficult to confidently predict what will happen in the property market post. There is also the fact that problems for some people present opportunities for others, which could influence the market in one way or another. It is understandable that people are looking for direction and guidance with respect to Brexit and property market. Of course, this is the same situation for everything that is likely to be influenced by Brexit. Sadly, the uncertainty with what Brexit entails and what it will mean ensures it is not possible to say with any great certainty what will happen. However, if the uncertainty continues, people should be prepared for the market to remain similar to what it is today. Of course, people are still making moves and property deals are being concluded, even with the uncertainty of the property market. If you are looking for guidance and assurance in making a move, contact VitalSpace and we will do what we can to ensure you make a move with confidence. You need to talk to VitalSpace Estate Agents Click the link below for a FREE no obligation appointment and our Director will visit your property and provide detailed information about the current property market. Request your free property valuationConcerned about the current property market?
