The UK population have spoken. The result of the 2016 referendum on whether to stay in the European Union or not has ushered in a time of change and uncertainty.
The result was more or less evenly split, with the ‘leave’ camp just pipping the ‘stay’ vote. As a result, there are now many questions being asked about how Brexit will affect everything from the economy to jobs.
The housing market is normally used as an indicator of the overall financial health of a country. House prices are a question of confidence. If banks can borrow, then their customers can borrow but when the domestic and international economies are in flux, borrowing is harder.
The consensus of financial and property experts all agree: Brexit will hit house prices. The only variation is the estimate of how much. Some say as much as 10%; others, like the former Chancellor George Osborne say it could be as much as 18% by 2018.
The effects have already been noticed in some markets. The commercial property market took an immediate hit after the announcement of the ‘leave’ victory, with 10% knocked off prices. This is because businesses are less likely to invest in property during uncertain economic times. Many businesses are also looking to relocate out of the UK once our removal from the EU is complete.
House prices are also a certainty to drop, say experts, with the London property market already noticing a decrease in property prices.
All bad news?
For some, falling house prices is not bad news. For first time buyers or those needing to climb a rung of the property ladder, affordable property is clearly a good thing.
For some property owners, however, a fall in house prices may result in negative equity. In other words, they are left with a house that is worth less than what they paid for it.
Maintaining Property Value
With such an uncertain future with property prices and Brexit, as a homeowner you are possibly nervous and anxious about what the future holds.
The best course of action, say experts, is to ensure that you invest well in your property, making appropriate modifications, additions and extensions that are in line with the property’s value, location and style.
Look to make changes that bring you the biggest return of investment, such as new a new driveway and other hard landscaping.
Brexit and the property market will mean winners and losers – make sure you are on the winners list.
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