Brexit impact 2019: UK property market predictions
What will happen to the prices of houses in the UK after Brexit? Will the prices take a hit or will there be a sudden rise in 2019? All the UK nationals are unsure of what is going to happen. How is Brexit going to impact the economy, the society and most importantly the UK property market? Everyone is just waiting, waiting to know the Brexit consequences; what is going to happen to the property market and what is the next step.
Below, is what the experts predict will happen to the UK property market in 2019:
A fall in the number of houses on sale
According to a Royal Institution of Chartered Surveyors (RICS) survey, the market is expected to flatline for a while. According to them, the average number of homes that one estate agent books in a year have fallen to 42.5 homes. That number is the lowest number found in the survey – a survey which started in 1978! The price of houses has fallen in East England and mainly London, whereas the prices in areas like Wales and Scotland is on a rise. This probably has to do with factors like affordability and lower tax pressures. London estate agents have confirmed that houses in London, especially those that cost around £1 million pounds are going to be outmoded.
An increase in rental prices
Since most people do not want to take the risk of putting their house for sale on the real estate market, they will prefer to put the house on rent. Also, since a large number of people will not want to buy a house during this period, they will prefer to take a place on rent till the cloud of uncertainty disappears. So, keeping that in mind, the experts predict that there will be an increase in the price of rent in the UK real estate market. A RICS market survey in 2108 also confirmed that the demand for lettings will start increasing, hence with a higher rate of demand and a lower rate of supply, the rentals are bound to increase.
A slow but steady rise in affordable housing
Because the locals are unsure if they should put their houses for sale during this period of uncertainty, most of them prefer not to. So, the number of houses on the market is much lesser when compared to the past 5 years. On the other hand, since the price of the pound is also taking a hit, the number of prospective buyers in the UK has also reduced. Experts claim that the UK housing market in 2019 has become almost as weak as it was in 2012! However, people will still have to sell their houses for desperate reasons – deaths, debts and even divorce. So, for those willing to take the risk of buying a house during this period might just get some really good deals and discounts.
A rush of foreign investment
Due to the uncertainty of the overall impact on Brexit, there has been a fall in the pound. With affordable housing on the rise, a decent number of houses still available for sale in the UK real estate market and a drop in the pound, wealthy foreign and even local, nationals will start to buy property in the UK. For such wealthy prospective buyers, a fall in the pound while the prices are low is a great deal and a risk is worth taking. In the near future, around 5 years from now, it is predicted that the prices of houses in the UK will start to rise again. Places like London will see only a 4 to 4.5% rise, whereas places like Wales and Yorkshire will see an increase of around 18 to 20%. On the other hand, some experts predict that the market might take a while longer to just become stable.
This post was brought to you by Dexters London based Estate Agents & property advisers.