E The UK Housing Market Has Become More Interesting After Brexit

Since Brexit, UK housing market prices have been fluctuating, leaving both homeowners and interested buyers perplexed as uncertainties in the banking sector pile up. Right now, it’s not clear how many financial institutions will close shop in the UK as the separation process gets underway.

Early this year, there was a clear indication of investor doubt over the UK housing market with reports suggesting that a good number had moved to withdraw their investments. This was due to their anticipation that value could greatly be affected by Brexit – and surprisingly, it’s hard to point a finger given the developments in the property market over the last few months.

Later in May, big players in the market such as M&G Investments, Henderson Global Investments and Standard Life, all lowered the usual ‘offer’ price for property owners interested in selling out. The same was also reflected across smaller players and as depicted on ready steady sell, which is one of the platforms that offer quick and attractive sale offers to property owners in the UK, little has changed since then.

According to Halifax’s latest index, it was clear that prices dropped significantly over a period of three months and continued to plummet since the announcement of the referendum results.

The data also showcased that  prices were expected to go down 3% by the start of next year as uncertainties in the process of separating Britain from the EU continue to affect the economy.

Property owners are more frequently becoming victims of the post-Brexit UK as prices housing prices continue to decline. Under these circumstances, some of them remain patient and wait for the market to jump back, whereas others are busy hunting for better selling prices across various agencies.

And as things continue to toughen, other methods of property disposal could end up being suspended owing to the fact that a rapid completion of the separation process could lead to a potential credit crisis. For instance, during the 2008 financial crisis, investors who advertised with estate agents to sell their houses were forced to wait until the agents executed sales, regardless of how long it took, in order to get their money.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor ...

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James Hanshaw 3 years ago Contributor's comment

Whatever the effects of #Brexit, Britain has a major shortage of homes to buy or to rent. This shortage has been building up for years and it continues as new home building lags population growth by so much. I do not know about the short to medium term future but long term UK house builders must be a good bet. I am staying with those I own $BVS, $PSN and $BWY.

Joe Economy 3 years ago Member's comment

As the pound continues to weaken beyond 20% of its pre-Brexit value, I believe we will see a lot of fear continuing to grip UK consumers. Since houses are one of the biggest investments anyone will make its no surprise that Brexit is causing the jitters. These fears are even more pronounced for British tourists trying to squeeze value out a diminishing pound, and even greater still for UK investors using sterling to buy property overseas. Will it turn around some day? Stiff upper lip as they say. The Brits have seen bigger disasters in their empire, or have they? Perhaps the worst is yet to come.