Brexit, the conversation on everyone’s tongues. Many who voted leave have regretted their decisions. However, there is no going back as Theresa May has just recently triggered article 51. So, the next question is, what does leaving the EU mean for homeowners, those looking to buy and the UK property market?
Estate agents such as Savills, Foxtons and Countrywide have suggested there has been an overall slowdown in the UK property market. As seen in the office for national statistics graph below, prices are generally at a flat rate. However, Savills have also suggested that although this is true, they predict that in five years prices will again begin to rise, but at a slower rate than previous years. Which could mean a healthy growth rate for home owners.
But, although it is suggested there will be future progress in the housing market, the capacity for future price growth could be heavily affected by Brexit, as this has also weakened the pound. If this continues, alongside a surge on inflation and interest rates, there will no longer be a stable platform for high levels of increased growth.
Contrary to this, if May can secure successful negotiations that lead to a continuous positive economic growth, house prices could also inflate at a speedier rate than predicted.
In the property Industry, whilst considering house prices we also need to consider the demand for buyers amongst mortgage regulations and banks lending policies as these factors can also affect price increase.
The conclusion to the question of what Brexit could mean for the UK property market is that due to an unknown outcome of knowing which way negotiations will go, we just won’t know till decisions are set in stone. However, the loss of foreign investors could influence a decline in the market. But may not have any impact if we continue to maintain positive economic growth, there will be no worries for us.