How Would A No Deal Brexit Impact Brighton Property Market?
It appears as a no deal Brexit is becoming more likely, and it is sensible for people to plan accordingly. The only problem is that no one really knows what is going to happen if a no deal Brexit occurs and for the housing market, uncertainty is always unsettling news.
When there is uncertainty, people hold off from making major decisions, and this means many people don’t want to carry out a property transaction. This makes sense. If you are unaware of what the political or economic landscape is going to be in a year or two, why should you make a commitment of a few years when you don’t know you are going to be affected?
In recent years, various periods of uncertainty have stalled the property market, and this is certainly an issue that the market is currently contending with.
Bank of England comments have caused some concern
Of course, the Bank of England recently made a comment about how house prices could react to a no deal Brexit, and it wasn’t positive. The B of E stated that there could be a significant fall in house prices over a three-year period, and this has caused many homeowners worrying about negative equity.
It is essential that people realise that the Bank of England isn’t always right with its property predictions. In recent years, there have been several calls which have proven to be false or over-exaggerated. There is also the fact the Bank of England may be trying to influence the market or even the behaviour of politicians with these remarks, so there may not be such a negative outcome with a no deal Brexit.
Not everyone believes a no deal Brexit will have a negative outcome
However, there are also industry sources which believe that a no deal Brexit may create a positive outcome for some people. Some of the ways that a no deal Brexit could lead to a positive outcome include:
- Lending remaining affordable due to lenders making a commercial decision to provide rates that attract buyers
- A delay or cancellation to any further interest rate rises to aid the economy
- An opportunity for foreign investors to find attractive property deals
There is also the argument that lower property prices will appeal to first-time buyers, helping these households step on to the property ladder. Even then, if the supply of property falls due to some homeowners deciding that it is not worth their while to sell at this point, this could lead to the property price rebounding, ruling out the prediction made by the Bank of England.
When it comes to Brighton’s property market, the fact that property is in high demand means that prices are unlikely to be affected as much as the Bank of England suggests or as bad as some other parts of England may be affected.
There is also the fact that Brighton could see an increase in demand for property from people looking to exit London, so at this point, and even with a no deal Brexit looming, there is no need for fresh concern about the Brighton property market.
Whatever move you want to make in the Brighton property market, our estate agents in Brighton or letting agents in Brighton can help. At Easy Let & Sale, we are pleased to have helped countless property owners move into their new home and we look forward to assisting you soon.