Throughout the EU referendum a host of contradictory comments have been made with regards to the effects of Brexit on the property market. This article aims to see whether or not, now that a decision has been reached, there is a more accurate forecast on the future of the UK property market.
With experts reporting that buyer demand fell to an 8 year low upon the announcement of Brexit and the supply falling at it’s sharpest rate to date, it seems likely that Britain’s decision to leave the European Union will have a noticeable impact on the UK property market.
It has come to light that post brexit, the majority are now agreed on one conclusion, house prices will be lower in the long-term, with the former Chancellor George Osborne predicting that house prices will be 10% to 18% lower by 2018 than they would have been should Britain have remained with house prices previously on the rise. However it has since come to light that in the worst case scenario this figure is more likely to be around the 8% mark.
A recent statement from the chief economist of RICS (Royal Institute of Chartered Surveyors) aimed to settle the publics nerves over the effects that Brexit will actually have. Stating “Big events such as elections typically do unsettle markets, so it is no surprise that the EU referendum has been associated with a downturn in activity. However, even without the build-up to the vote and subsequent decision in favour of Brexit, it is likely that the housing numbers would have slowed during the second quarter of the year.
“Rics data does suggest that the dip in activity will persist over the coming months, but the critical influence looking further ahead is how the economy performs in the wake of the uncertainty triggered by the vote to leave.”