When Britain voted to leave the European Union, this is an indication that majority of its citizens have also accepted the repercussions of such decision. While there are some benefits that could be apparent, the uncertainties also abound. Among others, one of the things that will inevitably be affected will be the UK real estate. How will it impact houses for sale? Will it have negative or positive effects in the real estate industry? Keep on reading and know more what is most likely to happen in the field of real estate as a result of Brexit.
It Will Lead into Uncertainty
If there is one thing that is certain about the future of the UK real estate market, it would be that it is going to be uncertain. Everything remains bleak. Both the buyers and the sellers are still wary about the decisions that they will make. Consumers have never been uncertain, which is why the market is left afloat. In the months leading to the referendum, people have been holding off because they are unsure of what the future can bring.
Reduction of Consumer Confidence
This is one of the immediate impacts of Brexit in UK commercial real estate. In a study that has been conducted by one market research consultancy firm, it has been asserted that the referendum immediately resulted in to significant drop in consumer confidence. While it has been historically low, the drop after Brexit has been too sharp to be ignored. Because of this, there have been calls for banks to reduce their interest rates, making it easier for people to have the money to buy property. As of the moment, however, this move has not yet been welcomed by banking institutions.
Lower House Prices
A few weeks after the referendum, houses for sale in UK have demonstrated drop in prices. This could be some good news for buyers, but for sellers, this is not a good thing. Historically, spring should be a great season to sell houses because of the increase in demand as many families would love to move in to their new homes before Christmas. The price growth, however, has been unhealthy in this season. With low-interest rates, high employment rate, and healthy general economy, fluctuations in house prices are not a favourable sign.
From all of the things that have been mentioned above, there is one thing that is clear – the UK real estate is not spared from the consequences of Brexit. It will be heavily hit. With this, it is high time to be more intelligent with real estate decisions that you will be making in the next few months.