Brexit and the housing market

Given the state of uncertainty the country currently finds itself it would be a brave (or should that be foolish?) man who would make any predictions right now. Who will be Labour leader, whether the pound will recover, when the next General Election will happen or what the terms of our EU exit will be. As such, to speculate over what the housing market will look like in a year’s time will involve an awful lot of guesswork. But let’s look at some of the things that are unlikely to happen in our opinion, in order to allay any fears.

House prices should fall drastically

We may well see house prices fall a little but fluctuations in this market are common. However, despite the odd scaremonger predicting crashing prices most predictions tend to point to prices being largely unaffected. Indeed, the Council of Mortgage Lenders released a statement soon after the result which said it does not expect house prices to be significantly impacted.

Buyers will not disappear
There will always be people looking to buy a home. While the uncertainty in the run up to the referendum no doubt caused some people to hold off on purchases until the picture was a little clearer those people are not going to decide not to buy a property as a result of Britain’s exit from the EU.

Lenders will still lend

There is an unfounded fear that Brexit will make lenders batten down the hatches and shut up shop but in our opinion this is unlikely to happen. As the Bank of England governor Mark Carney stated, banks are prepared for this and more funding may be available to them.

If you’re looking to buy a home and are concerned about Brexit and how it will impact you, come visit us at We Know Mortgages Ltd. We’ll help you find the most suitable and competitive deal to take that first step on the property ladder.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.