Brexit: A look at the impact on property prices
With an upcoming referendum deciding whether Britain will stay in the European Union or not, many sellers are looking for fast home sales to avoid the possibility of losing money.
The ongoing discontent felt around the country by those who feel that Brussels has too much control over how Britain operates has become a hot topic for the government, especially in recent weeks – and the furore is only set to continue as the deadline looms (23 June).
While many believe that the current drive to leave the Eurozone is an objective of the vocal minority alone, it has nonetheless sent alarm bells ringing through a variety of institutions and industries around the country. With foreign investment slowing since Brexit first hit the headlines – and the pound hitting a seven-year low against the dollar – it is somewhat understandable that those within the property market are beginning to wonder exactly how leaving the EU could affect the sale and purchase of domestic housing.
Many property experts are attempting to calm the masses, believing that any break from the European Union would have little influence on prices.
“Property shortages will continue to be a structural factor in the market,” said Phil Shaw, chief economist for Investec. “In terms of regulation, mortgage lending and prudential lending limits won’t necessarily change as a result of Brexit, and they are all arguably more important determining factors in house prices than the EU vote.”
There are, however, a growing number of voices postulating a fall in value for domestic properties, as high as 5% in certain areas. This is not directly linked to Brexit itself, but rather a result of the uncertainty felt by buyers and sellers across the country which could ultimately lead to a stagnation of the market.
In a recent survey by online estate agent eMoov, 15% of the 1,000 homeowners questioned were worried that they could lose money as a result of Britain leaving the Eurozone. This doubt is causing many sellers to look for a fast house sale in order to avoid any possible negative consequences, while others still are retreating from the market completely in order to weather the storm. Those sitting tight are hoping that the vocal minority are quelled in the upcoming referendum by those who are already happy with our position within the continent.
If you’re looking to sell your house quickly due to concern that the upcoming Brexit referendum could affect your home’s value, why not avoid the stress and get a quick sale for cash? National Homebuyers – we buy any house – so call 08000 443 911 or request a call back to find out how much you could get for your property.