In the uncertainty and disputes surrounding Brexit, will Property Prices Fall?
Most uncertainty in any market will ignite a subdued response in investment, but will the ongoing effects and yet to be confirmed Brexit and its effects lead to house prices correcting themselves across the UK?
Without question the prices of property in the UK are at a premium, from the luxury corners of central London out to the industry and working towns in the North of England. Many see the increase of immigration as a cause for the spiralling house prices and also the influx of investors looking to get rich quick and secure their pensions on the back of property. The cost of housing is putting many with no chance of buying for years to come and causing many who are renting to be paying the absolute maximum they can to fund landlords pockets. Though, is this just natural inflation in house prices, and if a hard Brexit comes along and starts to tackle the likes of illegal immigration and property investors / landlords, could we see a plummet of house prices back down to a figure that which they should really be if we are ever to consider the four walls we live in a home once again?
Property experts have their opinions out there and most will point to a lower than the average national inflation rate increase in property prices and others will also say that Brexit will end the inflation of property and ignite a downturn in prices. Continued bad news and certainly not in the same upward trend on values news as property owners have seen over the past decade may install some fear in to them and especially those investors who came on board later in the day, UK housing market could be set for a severe slowdown and similar headlines will mean that the likes of negative equity will be haunting peoples mind during and after Brexit.
Rising interest rates? This is a point than many will say is needed in this country, and it will be something that would correct the housing market the fastest. We certainly can expect to surely see the likes of a small interest rate rises in the next year or so as Brexit approaches and kicks in to gear and this may make a severe dent in landlord profits and cause those who’ve borrowed / remortgaged countless times on the back of big house price rises be in a dangerous position… Repossession rising?
Statements such as the likes from The Guardian “according to the estate agent Savills has experienced house price growth of 70% over the past decade” should certainly make people wonder what is sustaining the prices? A change of running of the country with the likes of the less than confidence inspiring Theresa May fighting in the Brexit war against the EU and the supposed threat and uncertainty behind Labour and Jeremy Corbyn and even Nigel Farage MEP stating that he would be back on the scene is Brexit breaks down must surely mean an increased subdued atmosphere in the UK property market and a down turn in prices to give many the hope they are after which is a correction in prices.
A simple ban on letting fees for tenants surely will not help in the mid to long term, only it will try and look good on the government part that they are at least making an effort rather than annoying their fellow politicians by putting property prices at risk here in the UK.
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