Well, with just over a month before Brexit on 29 March 2018, it would definitely have to be a speedy house sale! The question is in which way will the UK property market be impacted by the country leaving the European Union?
How Will Brexit Impact the Property Market?
Unfortunately property experts nationwide are polishing their crystal balls because no one can accurately predict how the property market will react to the country’s departure from the EU. No one knows how the UK will leave and what type of deal will have been secured by Theresa May at the 12th hour.
Certainly a Hard Brexit could see property prices fall in the short term. Interestingly though, since the referendum on 23 June 2016, the UK property market has changed little and has remained surprisingly buoyant. In places where there is high demand, prices have still increased. In Birmingham, the country’s second city, for example, the annual growth has continued
The number of people actively buying and selling property in the last quarter of 2018 did slow more than usual as many decided to delay their decision on what to do. It is widely believed that house prices could drop immediately post-Brexit but will begin to recover again after a few months – in the same way that they did after the two recessions. The properties at the high end of the market are likely to remain unaffected.
The Bank of England has conducted a survey which suggests that the demand for mortgages and credit cards is expected to fall post-Brexit and has lowered the interest rate already to encourage buyers.
Brexit and Property Prices
At the end of the day, after a quieter period immediately post-Brexit, property prices will start to rise again because increasing demand in most areas certainly outstrips supply and people do need to have a roof over their head. There are greater determining factors on property prices than Brexit and these are wage packets and interest rates.
If you do feel that you would like to sell your property before 29 March, the only guaranteed way to do this now is to use a reputable property for cash company. Having said that, you would need to have already chosen a property to buy because it is almost impossible to complete a property purchase in less than 40 days.
Buying a property is your single biggest purchase and is definitely not one to rush as this could prove a very costly mistake. Like so many others, maybe the wisest decision of all is just to wait and see how things ‘pan out’ for the UK after 29 March 2019.