The impending repercussions of the Brexit debate are unavoidable and fast-approaching, causing concern amongst the property market specialists. With political uncertainty undoubtably holding a strong grip on the housing market, the issue is bound to have a substantial impact on house prices across the UK.
The latest reports from the property crystal ball show that house prices could drop by roughly 6% if the UK leaves the EU, with London and Northern Ireland expected to take the toughest hit. Here, the prices are expected to see a fall of 7% and 7.5%.
While a 6% drop is predicted, there have been mentions of a fall between 10 and 20% if the market retaliates heavier than anticipated.
Mostly, the outcome is determined by consumer confidence as the UK’s ongoing political discussions are evidently causing potential buyers to hold off on buying any homes in case prices step towards unstable grounds. Experts have explained that as long as consumer confidence picks up and grows stronger, the house prices across the market will follow in their footsteps.
While it is challenging to accurately forecast the outcomes of the Brexit deal, the shift in the UK’s international presence is proving to cause collateral damage to consumers who are unsure of how to act during this waiting period until October 31st. Additionally, due to Brexit being a revolutionary occurrence, there is a severe lack of historical data to put towards a comparative analysis.
Although we are mostly in the dark when it comes to Brexit predictions, the most reliable statement floating through the property finance network at the moment is that London will be most likely to see the worst of the negative after-effects. The capital attracts the highest volumes of foreign investment and prices are already travelling down the trajectory, making a further fall all the more likely.
Despite the post-Brexit confusion across the housing market, the government focus needs to be directed to crisis management, should there be an adverse effect. This mitigation could be achieved by reducing or delaying stamp duty, tweaking the interest rates and incentivising pensioners to downsize. These steps can buoy the housing market and help to maintain the industry’s resilience that has been so prevalently shown in previous market crises.