One of the key reasons why or how will Brexit affect house prices, in a negative way, is the exodus of migrants from EU nations. Major banks relocating and the once weaker and now slightly stronger Pound stopping overseas buyers hiking the price up. The demand for rentals would fall, the yields not being the same as 2-3 years ago and therefore a fall in house prices was predicted.
Not only is Brexit in line to affect house prices, the new taxing regulation on Buy-to-Lets, hike on Stamp Duties on 2nd properties and for me the main reason would be Crossrail. Looking at the above, the global economic slowdown seems to be matched in timing with the Conservative’s mishandling of Brexit referendums, which, by the way may go to a 2nd vote. Crossrail and new taxes/stamp duties all seem to much of a coincidence to be running in parallels on the calendar.
It is very clear that while people start saving in the 7-year cycle of property going up and then going down, London and the South East will start to ease the pressure on First Time Buyers by allowing hub cities and towns to take throttle off rising prices. Brexit is here to give the UK a fresh clean slate (or meant to be) and its own two feet to walk on and allow it to be less dependent on an economy fuelled and driven by the housing sector that includes the building and timber merchants, the bathroom, designer tiles and gardening markets. We can’t simply say Brexit is the clear reason why house prices are going to fall, it’s part of the reason but not the main reason.
Buyers are also very cautious following the Bank of England’s decision to hike the rates in November to 0.50 per cent. The economy has not given savers any real returns through the banks and only allowed a property boom with money readily available. Stringent mortgage rules and tighter regulation means not everyone will get a mortgage. And with less and less buyers on the markets and sellers with decent equities in their home will as usual panic and want to cash in on their premiums, thus knocking off £30-60,000 off the asking price which will come across as a fall but not on the wider markets. Brexit crash has nothing to do with prices falling, for now.
Source: sunnewsonline
