What can we expect to see from house prices post Brexit?
When the EU referendum came around, one of the most prominent points of discussion was the property market, or more specifically, the housing market for first time buyers. So now that we’ve initiated article 50, and Britain has officially begun its journey to depart from the European Union, what have we observed in housing prices in recent months?
House Prices since the Referendum
Unfortunately for those hopeful investors who banked on prices plummeting after the independence vote, house prices in the UK, and especially in high demand areas of London, have actually risen.
The average price of a three-bed semi-detached house was up 2.6% annually, reaching £233,000 with ten buyers pursuing each property, and that’s only the start. Experts predict that this gap is only due to widen in coming months, with more and more first time buyers entering the market every month, increasing the demand and skyrocketing prices.
The Value of the Great British Pound
One of the major contributing factors to the current state of the housing market is the weakening of the Great British Pound. Due to the resulting shift in exchange rates, it has become cheaper for investors positioned outside the UK to purchase properties, choosing to then let them out to local residents looking for housing. This could potentially drive a shift towards letting in heavily populated and increasingly popular areas, possibly leaving a lasting impact on the UK housing market overall.
Whilst it’s too early to tell exactly what we can expect from the housing market once Britain has completed its departure from the EU, we can expect significant fluctuation as investors continue to bank on uncertainty amongst first time buyers.
Is It the Right Time to Buy?
If you are looking to purchase, you shouldn’t be concerned however. The post Brexit housing market presents a great opportunity for first-time buyers and property investors to invest in property. This means that we can likely expect to see a growth in the amount of developmental properties with more and more homes being constructed around the UK.
The best option given the current market is to play it safe and talk to an expert. So if you are interested in purchasing your first property, visit our website here or talk to one of our specialist team on 01483 880900.