Brexit and The Property Market
With daily updates on Brexit and whether we are leaving the EU with or without a deal, many of our clients are asking what impact Brexit will have on the housing market.
I’m sure I’m not alone in feeling like we’ve heard about Brexit for a long time now, to the point where many of us have become desensitised to the impact on our lives. But with the deadline around the corner again, we thought it would be an opportune moment to discuss the impact on the property market.
Once schools are back in session after the summer break, the property market usually picks up before the festive season, with many families looking to settle into their new homes before Christmas. This year (2019) has been slightly different, with many areas noticing a very slow increase in the market following the summer school holidays. Brexit is definitely to blame for the dampened activity in the property market.
There’s a lot of speculation in the media and in the financial sector that property prices are going to fall following Brexit. Percentages making the headlines are anywhere from 5 to 15% fall in house prices in the UK. While this sounds extreme, these figures will vary widely across the country. We also need to remember that the drop in house prices only has an effect on our finances if we’re looking to move home. So if we don’t need to move home, then we don’t need to be overly concerned about a potential drop in house prices.
Brexit can’t be all doom and gloom, can it? Depending on the outcome of Brexit, we’re likely to see a review of stamp duty, which could positively impact the housing market. The number of individuals who have put off moving due to the uncertainty caused by Brexit will be more likely to take action and move if a deal is reached, which could again put some life back into the property market. There have even been a few articles published that rave about the property market taking off following Brexit. While this sounds positive, only time will tell what exactly will happen with the UK housing market following Brexit.
With interest rates low and homes struggling to sell, it’s definitely a buyers market. There are deals to be found everywhere, and if you are keen to grow your portfolio and benefit from investing your wealth in property long term, it’s time to take action.
Nichol Smith Investments offers a hands-free investing service for our clients, meaning we manage the whole process from finding a property for our clients; managing the renovation or refurbishment of the property; to handing the property over to a letting agent. All hands-free and no time commitment required from our investors.
If you’d like to arrange a call with us to hear how we could help you with your property journey, click the button below.
