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UK chooses independence from EU – so what now for house prices?
The votes are in, they’ve been counted and verified, and the people of the UK have decided to split from the European Union. So, if you’ve been worrying how the outcome of the referendum will affect house prices, what happens now?
The last few weeks have been a period of uncertainty for the housing market. With the vote so close, it was hard to make an accurate prediction of the outcome – and almost impossible to tell how either result would affect house prices.
In the week of the election, property prices in London suffered a slump, according to a report by Rightmove. With house prices in the capital the highest in the UK, a price drop of 0.2% doesn’t sound like much – but it works out at nearly £1,000!
However, the referendum wasn’t the only cause of this downward movement, and new stamp duty thresholds for second homes have also made buying more than one property more expensive.
Now the UK has voted to split from the EU, there’s a chance everything from buyer demand to regulation could change – but no one knows exactly how. And few things affect the property market like uncertainty.
Back to normal?
Had the UK voted to remain with the EU, chances are property prices across the country may have started to return to normal. However, with it voting to leave, it’s likely that sense of uncertainty will hang over the housing market for a little longer.
But if you read our earlier blog on house prices and the referendum, you may not have let the election put you off listing your home for sale or searching for a new one anyway.
Help to buy
As we mentioned in our last blog on the referendum, there were commentators who felt that a vote for leave could affect the property market for up to two years, but others claimed that the chances of a Brexit vote causing a collapse in house prices was only “slim”. Unfortunately, it seems we’ll have to wait a little longer to see what happens.
If you’ve been using or hoping to use a government scheme to help you buy a home, like the Help to Buy ISA*, you can carry on. There’s a chance the outcome of the vote could spell changes to these schemes, but this won’t happen overnight and you can keep taking advantage of the tax break on your property savings while it’s there.
Selling and buying a property is a huge decision that comes with a significant cost and can take months to complete. It’s not something people rush into lightly – and if you’ve made up your mind to climb the next rung of the property ladder, not even the referendum will have stopped you.
Buying a home is a big step and can be stressful – even without a looming referendum. We hope now the result is in, you can focus on what your next move on the property ladder will be. And remember, if you want advice on mortgages and buying a home, keep checking the blog – we’re full of useful advice!
*It was reported in August 2016 that the government bonus on Help to Buy ISAs cannot be included in the initial deposit on a home, but is paid once the sale has completed. Find out more here.