For both Remainers and Brexiteers, the UK’s departure from the EU presents an uncertain time for the housing market. Our experts discuss the effect Brexit will have on your sale.
Financial experts have expressed a lot of concern about the possibility of the United Kingdom exiting the EU and the potential consequences that a no-deal Brexit would pose. Whilst people may wish to wait to see what happens on March 29th, it’s possible that the situation will not be resolved by then, given Theresa May’s admission that the deadline for leaving the EU may have to be extended.
In the event of a second referendum or even a general election on the horizon too, there could be a lot more uncertainty to come. Waiting for the housing market to stabilise might not be an option for everyone.
In September last year, Bank of England governor Mark Carney suggested that a no-deal outcome could result in house prices falling by as much as a third.
Though not many people predicted that no-deal would become such a serious option, it may be harder to get a mortgage in such a scenario. Interest rates would likely be cut if Britain were to leave without a deal, and banks may be less willing to lend. It is difficult to know for sure, but many experts are warning that there would be a sharp decline in the market, and that a higher likelihood of unemployment and wage stagnation would put many off buying a house.
Theresa May’s Brexit deal was defeated by a majority of 230 in the House of Commons. From here, there are several options for the government regarding Brexit, many of them unclear.
The quality of the deal struck with the EU would largely correlate with the housing market. House prices suffered a big post-summer dip last year, and though they did stagnate after the referendum result, they have largely been on the up. Mortgage rates are low right now, and though that suits buyers, it can still be good time to sell a house depending on your area.
Brexit is unfortunately very hard to predict. It’s difficult for professional mortgage advisors to offer much clarity, but our expertise in property means that we can advise you it comes to making long-term decisions on selling your home.
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