So what happens with the house prices after Brexit?
A ‘No Deal’ Brexit is most likely the worst case scenario. Most property market experts are in agreement that a No Deal Brexit will lead to a serious downturn in property prices. Mark Carney, governor of the Bank of England declared that a No Deal Brexit would most likely lead to a 35 per cent decrease in house prices.
Not good for the average householder. Not good at all. Following the statement from the governor of the Bank of England we have already seen sensitivity in the market within certain areas of the UK. Mainly London.
Falling house prices due to a No Deal Brexit would mean it is easier for first time buyers to get on the property ladder, but due to the rest of the economy being uncertain it would mean securing a mortgage will be difficult, it is more likely landlords will purchase be purchasing further properties at a lower cost and then either putting them up for let or sitting on them until the financial climate changes. As they are in a position to spread the risk.
So in a nutshell.. a No-Deal Brexit, as with every other area of UK industry and business (residential or otherwise) is going to leave a massive amount of uncertainty. Leading to a volatile property market. As with any situation their will be winners and losers, but the for the average man on the street the situation will leave them further out of pocket.
A ‘Deal’ Brexit is a much better option than the No Deal.. but still uncertainty will reign with Brexit being in such a state of no real answers, leaving the housing market in a state of constant fluctuation until some real deal is brokered by the government. There has been much speculation from property market ‘gurus’ on how things will pan out for housing market but really no one knows until the Deal is done.