Regardless of whether you wanted to
leave or remain, Brexit has impacted the UK housing market for everyone. But now
that the verdict is out and the UK has left the EU, what are the predictions
for post-Brexit future?
According to data from the Land
Registry, the average annual house prices increased by 2.2% in December which
is up from 1.7% in November. For the first time in two years, house prices have
increased all over the UK.
been a year since our last post on Brexit and not much has changed. There is
still a sense of uncertainty around how it will affect the housing market and
self storage as well. There’s no denying that some sellers have been waiting
with bated breath with hopes of a higher post-Brexit price. Other buyers have been
reluctant to purchase due to fears that the prices may drop in the event of a
people solely blame Brexit, there may be more to it than that. There has been a
cause of concern about the UK housing market since the 2008 crash and we haven’t
seen a noticeable increase in transactions since. With Boris Johnson replacing
Theresa May as Prime Minister, could we see a shift in momentum or is it too
soon to tell?
The uncertainty around Brexit combined with fewer foreign buyers and a higher stamp duty is affecting the UK housing market. For the first time since 2009, the country is experiencing negative growth and not even self storage facilities are exempt.
Late last year, economists predicted that a range of factors could impact house price growth in 2018. These include continued economic and political uncertainty over Brexit, the possibility of further interest rate hikes, falling real wages, weak consumer confidence and mortgage affordability. The Land Registry reported that the average house price growth in the UK, until April, was just 3.86 per cent. At the same time, the Royal Institution of Chartered Surveyors found that the level of homes on the market has remained constant at a record low for more than a year.