Should you sell your home before Brexit?

The departure of the United Kingdom from the European Union, popularly known as “Brexit”, is due to happen on March 29, 2019, regardless of any deal struck between the British government and Brussels over the future relationship between the two sides. Negotiations, albeit strained, aimed at an amicable split continue, but the possibility of a ‘No Deal’ Brexit, which would mean Britain leaving the European Union without any formal agreement, still exists.

According to Chairman of the Bank of England, Mark Carney, residential property prices could fall by more than a third in the event of a ‘No Deal’ Brexit. A poll of 30 market analysts, conducted by international news agency Reuters, similarly suggested that there was a slightly better than one-in-three chance of major downturn in house prices in the wake of a ‘No Deal’ Brexit.

A so-called ‘Hard’ Brexit, which would sever many of the existing ties between Britain and the European Union, would also be bad news for house prices, according to most experts. In this scenario, Britain would leave the single market and customs union and, instead, seek a free trade deal with the European Union. Negotiating trade deals typically takes many years so, in the interim, any trade barriers will affect wages which, of course, underpin house prices.

If Britain loses access to the single market, some companies, notably financial institutions in the City of London, would lose their ability to service clients in the European Union overnight. Consequently, they would need to move at least a proportion of their workforce to other financial centres, such as Frankfurt or Paris, to continue their operation. In addition, the collapse of Sterling, not to mention the uncertainty surrounding their eventual status in Britain, has already led some European workers to leave the country. This relocation, while regional and relatively small-scale, may well have a knock-on effect on house prices.

Of course, house prices depend on many different factors, including supply, demand, inflation and interest rates, so accurately predicting the future impact of Brexit is nigh on impossible. On August 1, 2018, the Monetary Policy Committee of the Bank of England voted unanimously to increase the Bank Rate by 0.25% to 0.75% and, regardless of the ramifications of Brexit negotiations for the British economy, any further increase(s) will subdue the housing market.

In 2017, house prices grew by a healthy 4.9% but, in 2018, the general consensus is that uncertainty over Brexit will increasingly as a brake on house prices; they will continue to rise across the country, but only by modest percentages, between 1% and 5%, depending on whose estimate you choose to believe. As to the question of whether you should sell your house before, or after, Brexit, frankly only time will tell if the experts are correct in their predictions for the housing market. A recent poll by Bishop’s Move, the largest family owned removals company in the country, suggested that 13% of buyers and sellers had cancelled a housing transaction because of economic uncertainty over Brexit.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More