Brexit has caused anxiety levels of the property sector to go on a roller coaster ride. A lot of negativity and apocalyptic scenarios were painted by Remain advocates, causing a great degree of uncertainty in the market, particularly the housing sector. Before you panic, however, you might want to take a moment on what is happening and what can happen.
What is Brexit?
It is a coined word which describes the impending departure of the UK from the EU. Its etymology came from two words, Britain and exit, which when combined can give you the word Brexit. The word was first used by Peter Wilding, the Chairman of British Influence, who wrote about it on May 2012, roughly 8 months before David Cameron, the then UK Prime Minister, declared he would be holding a referendum on Britain leaving the EU.
On June 23 in 2016, Britain held a referendum on whether or not it will stay with the EU. Although early polls indicate that residents would vote to remain, the opposite happened much to the surprise of many. While London, Northern Ireland, and Scotland opted to remain with the EU, the rest of England and Wales chose to leave. Political turmoil ensued because of this and as a consequence, the British Pound crashed to a 30-year low against the US dollar.
What is the effect?
As politicians continue to bicker about the details of Brexit, businesses are in a mad scramble to draw up contingency plans on how to cope with post-EU UK. The London property market is among those that have been affected, resulting in high levels of anxiety that is now straining the patience of home buyers, landlords and investors alike.
According to reports, there are those who are desperately trying to sell their homes while there are also those who are shopping for a good bargain. In fact, Rightmove, a property portal, revealed that the number of users visiting its site was up by 5% compared to the same period last year. This only goes to show the high levels of stress that Brexit may be causing among the population. Sometimes, however, worries are nothing but negative things that people keep entertaining in their mind. If you look at it closely, Brexit may even help boost the economy in the long run. Here are some things you need to know just so your anxiety levels will go down.
Will Brexit cause property prices to go down?
While it may affect the price to some degree, experts say it will be not that bad. Homeowners, landlords and investors alike may view Brexit as some sort of a hiccup that will go away in a while. Some of the factors, according to experts, which can really cause prices to go up or down, are still the same. These are prices relative to an individual’s earnings, rising interest rates, and tight mortgage market conditions.
Is this the right time to buy?
This answer would really depend on you. Nevertheless, when you look at it, during moments where prices of homes seem to be weak, it pays a lot when you wait a little longer until everything becomes clear. This does not mean though that you delay for a long time because of fear prices might crash. Study your options and see which of the two options can give you the best advantage.
Is it possible to find a bargain?
It is highly possible. Bear in mind chaotic times can produce the best bargains and deals. In some cases, expensive properties in equally pricey areas are the first to drop their prices. You can expect a discount of anywhere between 1.57% and 2.6%. You can check out your options by visiting online property listing sites like Rightmove.
Many sectors, particularly the London property sector, look at 29 March 2019 with a great deal of foreboding. Most of their fears, however, are starting to appear as false since none of the visions of doom as propounded by Remain advocates seem to happen. In fact, the opposite is happening, such as in the case of London reclaiming its place as the world’s hottest property spot. While it is only right to prepare for the day of when UK finally leaves EU, it should be done with optimism based on the fact that Brexit might only be a short distraction and everything will just settle down in a little while.