What Does Brexit Mean for the UK Property Market?

July, 2016

On 23rd June 2016 Britain voted to exit the European Union. The decision to leave, known as Brexit (British Exit), could have an impact on a variety of areas, with a loss of EU funding, trading laws and some workers’ rights. Much of the debate leading up to the vote, and indeed since, has been about how Brexit will affect the UK property market. For homeowners, or those planning to get on the property ladder, it’s important to know what to expect now we’re set to leave. Keep reading to see how you could be affected.

London bubble

The process for Britain to leave the EU hasn’t actually begun yet, but the effects have – or at least they have in London. MPs campaigning for Britain to stay in the EU warned that property prices would fall, and in London they have taken quite a hit. According to recent statistics from Rightmove, property prices in inner London have fallen by 2.3%.

The good news, however, is that, according to these statistics at least, the rest of the property market in the UK has been largely unaffected. Outer London has seen no real change, with prices increasing on average by £185.

Completely normal

More good news? Across the country there has only been a small drop in prices of 0.9% since 23rd June. That may seem a bit alarming. However, according to Rightmove, this drop is in line with the usual annual figures. In the run up to summer, house prices typically drop by up to 1%. So actually the activity in the market since the Brexit announcement has been completely normal.

Regionally, the situation is even better. The North West of England has only seen a drop of 0.5%, the third smallest change in England and Wales. The annual change, from July 2015 to July 2016 sees a 3.6% rise in property prices in this region.

The report for July also includes statistics about the demand for properties compared with other years. The same period in 2015 had a post-election boost, so it’s not really a fair comparison. A better basis for comparison, according to Rightmove, is July 2014. The good news is that buyer demand is consistent with this period.

Selling your home?

It’s clear from the latest statistics that now is as good a time as ever to sell your home, especially in the North West of England. At Weale and Hitchen, we’ve been selling property for over 25 years. Our unique step by step service takes all the hassle out of selling your home, with free market appraisal, accompanied viewings and a variety of advertising methods. For more information, get in touch with one of our local branches in Bury, Holcombe Brook, Harwood, Ramsbottom and Rawtenstall. We can’t wait to hear from you!

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