OK, so we are leaving the Europe Union… but what does that mean for our various property markets? Here’s a summary of my thoughts:
- Buyers are likely to hold off buying in the immediate future and over the summer. This could cause property price growth to be held back and, in some areas, cause temporary falls in prices. HOWEVER, if sellers ‘hold their nerve’ over the summer or take their property off the market, falls may be avoided.
- If sellers panic and reduce prices to sell over the summer, this could cause a longer period of house price stagnation or, in some areas, falls. Bearing in mind some areas/properties haven’t yet recovered to their pre-credit crunch prices, this could make it harder for people to move and increase the risk of negative equity (for some).
- In the London prime markets, sterling’s fall could drive demand from global investors with a long-term view, but demand may fall from UK buyers in this area… so it could go up or down!
- Perhaps the greatest impact, short and long term, is on landlords letting to migrant workers from Europe. The exit could ‘spook’ tenants. Worst case scenario: landlords will find themselves with empty houses which can’t be rented or sold if there is no demand. However, this is likely to be very localised and could lead to more landlords letting much-needed homes to those on benefits.
For more forecasts and explanation of what might happen next, read:-
What will happen to the property now we are going to Brexit?