Ever since the UK voted in favour of Brexit the housing market throughout the country has cautious waiting to see what will happen. In some parts of the country prices have fallen dramatically whereas in others it has been largely unaffected. For nearly a year the prices have grown by less than a percentage point. However most experts are still waiting for the bottom to fall out of the housing market.
Boom or Bust
With less than a month to the deadline it could make October a busy month for the housing sector. If a deal comes to pass then the housing market may rebound and sales will start moving again. There are experts who say that if a deal doesn’t come to pass prices and sales could drop as much as 10%. Even with the unrest surrounding Brexit areas like the Lake Districts have seen housing prices increase by just over 8% which is fantastic in any economy. That doesn’t mean that agents aren’t worried about the future.
Waiting to See What Will Happen
Experts estimate that more than 3 million residents are waiting to make a home purchase until the Brexit deal has been reached. Potential homeowners are being cautious, they don’t want to be stuck with a mortgage over the value of the home. Agents are starting to feel the pain of the slowdown as business grounds down to a halt. With the deadline looming, only a few weeks away it makes sense for buyers to just wait and see how the situation will turn out. Here is a look at what experts have to say about Brexit and the UK housing markets.
There are people who believe that the October deadline won’t change anything and there are parts of the market that are doing well regardless of the political situation. Families are still needing to move because of job changes or other circumstances and they cannot afford to wait for Brexit to make a move. The UK still faces a housing shortage with families’ still needing homes. There are fewer buyers in the market but those that do take the time and energy to go to viewings are more serious about putting in offers.
The long term effects of Brexit on the housing markets still remain to be seen and much will depend on whether a deal gets done before the deadline. Hopefully the market regains its equilibrium quickly.