There is no denying that Brexit weighs heavy on the minds of many people in the United Kingdom these days. The fact that we still don’t know the full extent of Brexit or what impact it will have on the country is a problem. However, there is also no denying that there have been a lot of negative predictions surrounding Brexit and the impact it will have on British life. Ever since the result of the European Union referendum was announced, Brexit has been cited as the cause of all ills in the UK with many experts predicting that Brexit would see the UK housing market collapse.
It is fair to say that at the start of January, Halifax announced that UK house prices had dropped by 0.6% in December and that the growth rate of property prices was slowing. However, there are many factors impacting on the property market and it would be wrong to say that Brexit was a significant factor in the current state of the UK property market.
We need more affordable housing in the UK
While life hasn’t been fantastic since the referendum, none of these wild claims have come to pass and there is nothing to suggest that Brexit is anything other than a bogeyman in the property market. The real issue in the UK property market comes with the fact that there is an insufficient supply of affordable housing. If there were more homes on the market within the budget of most buyers, the market would not be in the state or shape it is currently in, even with or without Brexit.
It is important to remember some of the claims that were made when it was announced that Britain would be leaving the European Union:
- Some property specialists predicted house prices would fall by 40%
- Unemployment was tipped to rise while living costs soared
- Some sources even suggested that the banking system in the UK would collapse
It has also been difficult to find solutions to the problem of getting people onto the property ladder. While many believed the Government acted sensibly in removing stamp duty for first time buyers purchasing property at less than £300,000; not everyone agrees. There are many experts who believe that this will lead to an increase in property prices which means that existing homeowners are likely to benefit more than first time buyers.
While these issues are felt more keenly in London than in areas like Stockport, the lack of affordable housing is an issue that applies across the entire country.
If you would like to talk more about Stockport property options, you will find that we are the local experts you can rely on. You can give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html