If Britain left the EU, How Would the Property Market Fare?
There’s been serious turmoil within European economies recently, most notably with Greece, and it seems that support for Britain’s membership is fading among the business communities. We can also expect an in-out referendum by the end of 2017 – next year – and the Tories are promising to vote for a British exit, or Brexit.
This kind of uncertainty makes people wonder what will happen to the housing market if the UK leaves the EU. One thing is for certain, the property market doesn’t like uncertainty – it stalled noticeably before last year’s election – so while a definite referendum answer will be a kind of relief, there will be long term effects of a Brexit.
In the run-up to the referendum, the property market will once again stall, as both buyers and sellers wait to see what happens. However, around two thirds of property experts believe that a Brexit will badly affect inbound investment into the UK property market.
Although Central London will bear the brunt of the impact, the regions will also suffer. The flipside of this is, however, that if the UK property market suddenly became free from EU red tape, inward investment might actually increase. It’s this uncertainty that’s at the heart of this issue – there are so many different potential outcomes that caution and patience are the only ways forward for everyone involved.
If the UK leaves the EU, immigration will fall, leading to lower property prices. Again, there’s a flipside – many Brits looking for another home in Europe may reconsider this move and spend their money in their homeland instead.
British buyers may end up facing extra visa or credit checks if they look to buy abroad, which will discourage some, at least. The upside to this is, however, that most EU countries welcome inward investment, so the extra hurdles will most likely not be too difficult, especially if negotiated with the help of a good estate agent.
