Supposedly, the United Kingdom was to exit the European Union on the 31st of March, but an extension was granted to the 31st of October. However, the deadline was again moved to January 31, 2020. Well, to state the obvious, the Brexit issue is far from over. So, how are property values in the UK being affected?
Is this a good time to be trading houses?
Whether or not the political uncertainty of the Brexit is affecting the property market, London and the South East areas have seen a price drop in property value. Also, the number of new property listings for sale have also gone down. The lowered prices have held back property owners from selling, thus, making it difficult to find a new home.
In contrast, the North East of England and the Midlands are experiencing a moderate growth in house prices.
With October 31st again failed exit due to an unacceptable deal, what happens if by the end of January 2020, Britain leaves the EU without a reasonable deal?
European Union Trade
London and Northern Ireland are predicted to be the most adversely affected if such a scenario plays out because both areas rely heavily on the European Union trade.
According to KPMG, one of the biggest accounting firms in the country, house prices in London and Northern Ireland will go down a bit further than it is now.
Mark Carney, the Bank of England’s governor, stated earlier in the year that a “no deal” would result in the decline of the economy which of course would have a direct effect on the earning capacity of the people and the number of jobs.
However, if a reasonable deal is struck, according to the market watchers, house prices will go up.
So, to go back to the question of whether or not this is a good time to be buying or selling houses?
The question is not the plummeting or rising property values, but one’s ability to pay if after the Brexit, the unthinkable should happen and the economy falls and you lose your job - everything will depend on your financial situation. Before buying a house, it would be wise to cover all your bases and have a legal and financial consultation to find out how you can protect yourself if such a fallout occurs and to find out what your options are.