Brexit now official, bringing to end years of uncertainty in the UK property market?

Brexit now official, bringing to end years of uncertainty in the UK property market?

  • The drama and political wrangles that clouded the property market with doubt as the UK prepared to leave the European Union came to an end last Friday at 11 pm GMT when the Brexit became official.
  • Investors – both local and international – had steered off significant transactions (both buying and selling) due to price dips, with those forced to sell their units to relocate facing the full wrath of a shrinking market.
  • But real estate guru Henry Pryor warns Brexit in itself may not be the ultimate influencer of prices hereon.

Most of us are obsessed with property speculation. The UK real estate has over the years grown to become more like a casino where anyone with money can “play”. And even those who don’t have the cash gamble passively by looking up their dream homes on Zoopla and checking current market prices.

Real estate players believe if a British Dream exists, it has got to be owning your own home, styling it up with a few tweaks here and there before releasing it to the market for a much higher price that can afford you a bigger purchase.

In recent times, the market hasn’t been as ‘juicy’ as before following close to four years of uncertainty over the Brexit deal. But the drama and political wrangles that clouded the property market with doubt as the UK prepared to leave the European Union came to an end last Friday at 11 pm GMT when the Brexit became official.

Associate Director of Communications at Broker L&C Mortgages David Hollingworth acknowledged that uncertainty since the June 2016 referendum “has weighed on the housing market, as potential movers decided to wait and see how things panned out.”

Investors – both local and international – had steered off significant transactions (both buying and selling) due to price dips, with those forced to sell their units to relocate facing the full wrath of a shrinking market.

While last year’s win by Boris Johnson may have boosted the market slightly, the pending Brexit deal was still holding the market hostage. But a few stakeholders questioned the alleged rise in property prices following last month’s ‘Alexander Boris de Pfeffel Johnson bounce’ as it was based on the Rightmove House Price Index which evaluates asking prices and not actual sales. There is always a difference between what a seller wishes to sell a unit for and what the buyer actually pays.

Hollingworth believes that the fact that the Brexit has actually happened may bring the market back to balance. “Some of that uncertainty will have lifted to a degree now that the outcome is clearer and there is some hope that this will see more buyer and seller activity,” Hollingworth said.

But real estate guru Henry Pryor warns Brexit in itself may not be the ultimate influencer of prices hereon. He cites the two most significant property price movers as being: what people will pay and what they can afford to borrow. The government is aware of this, and it explains why interest rates have been kept low in recent years coupled with shared ownership and Help to Buy schemes, Pryor added.

By Damian Wood
As an experienced trader, I work for myself managing my own small portfolio and also contributing on several investment news sites. I mix my passion for the industry and journalism to bring my readers informative and trustworthy articles.

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