Property in the UK after Brexit
What’s going to happen to property now we are set to leave the EU?
Already we’ve seen the markets for the pound decreasing and peoples growing fears that we don’t have a strong plan for this Brexit outcome.
This could have a knock-on effect for other UK countries; will they remain part of the EU and leave the UK? Who will trade with Britain now? Have we cut our good ties to Europe?
Leading up to the referendum vote, property prices had stagnated and stopped increasing as people waited with bated breath before making any deals. Brexit could make Britain and London less attractive to outside property investors. The demand for more property, whilst still remaining high, may have less pressure now there could be less people aiming to settle in the UK after this decision. Some investors may not see the point in placing their money in a country that has bad relations and a slipping economy. However some investors may take advantage of the weaker pound and buy property that they can now afford.
It’s predicted that property prices are likely fall and interest rates are likely to increase as less people wish to buy property for investment. For those wishing to buy to live, not invest, this may be a positive outcome, you’d assume. However, if the pound gets any more precarious, then banks may be even more restrictive and decisive over who they grant mortgages too, making it even harder for first time buyers to buy.
Whatever does happen, however, will take a while to be put into effect. Some say it could take a couple of years to fully detach from the EU, as negotiations and talks need to be had, and the UK needs to be allowed to leave after much consideration.
What we do know from this result is that 17 million people have expressed their discontent with how the UK has been run and how it has handled the issues of today. Property will be affected, as money is already being affected, but when and how remains to be seen.
All everyone wants is to have a place to live, build memories and feel secure. At the moment, it’s unclear if Brexit will deliver this or if it will destroy the future of the UK.