Other than these questions, another thing you need to keep in mind is the impact of Brexit. First, let’s talk a little bit about the history of Brexit before we get to the future. The United Kingdom first applied to be a part of the EEC (now known as the EU) in 1963, but they were vetoed because France did not want English to become the dominant language. In 1973, the United Kingdom finally became a part of the EEC. And as we all know, in June 2016, the vote in the referendum supported the withdrawal of the United Kingdom from the EU.
Now, the departure of the United Kingdom from the EU has been set for 30th March 2019, which is just around the corner. So, what does this exit mean for your home and the post Brexit real estate market? Just like Brexit, the vote is divided.
Some people believe that no matter what the outcome of the referendum, the prices will continue to rise. Even if the immigrants are not living in the United Kingdom, there is still a growing population. If the population increases, the demand increases, hence the price increases. However, this is just the basic demand and supply theory of Economics. A more likely theory for the increase in price is related to the slump in the pound. As the value of the pound drops, more foreign investors will be interested in purchasing assets, making the demand rise and hence the price.
If a no-Brexit deal happens, the prediction is that the prices in London will fall by 1.6 percent in 2018 and further by 0.1 percent in 2019. As for the United Kingdom in general, there seems to be a 2 percent rise in both 2018 and 2019, followed by a 2.3 percent rise in price in 2020.
So, it is probably safe to say that the prices of houses for sale in the London real estate market might become relatively cheaper, but not by much. However, it is important to remember that due to the uncertainty in regard to Brexit in 2019, many people will choose not to put their house on the market while some people will be forced to do so because of factors like debt. So again, the disparity will even out.
At the end of the day, the question of ‘should I stay or should I go’ should be based on 3 important variables
- Where are you living?
- Are you happy where you are living?
- What is the cost of moving vs the cost of staying?
The Brexit real estate impact cannot be determined with certainty, at least as of now. When it comes to such decisions, you cannot base them on speculations and predictions. However, if you do feel like you need to make an urgent and well-informed decision, you could just speak to us to get more specific information.