Brexit and the Property Market
Whether you voted to remain or leave the European Union in the referendum, the United Kingdom will be leaving in March next year. There is still much negotiation and discussions the Government need to have with the European Union to either make a deal or to leave without one. It is still unclear at this stage as to what is going to happen, which leaves much uncertainty; not only for the public but for businesses and the effect leaving the European Union will have on the economy.
The Bank of England’s Governor, Mark Carney, was reported earlier this month as having stated if the United Kingdom left the European Union in March without a deal then there was the possibility that house prices could fall as much as 35% in 3 years after leaving. This estimate is based on the test that the Bank of England run regularly to enable them to prepare for effects of a variety of things on the economy. Mr Carney was also reported as stating that mortgage rates could spiral and inflation could rise. Additionally, there is the chance that people could find that their property is in negative equity if house prices do fall substantially. It should be stressed that Mr Carney’s comments were setting out a possibility of what could happen after leaving the European Union rather than a prediction.
Presently, it seems there is too much uncertainty as to what precisely will happen to the Property Market following Brexit and we will just have to wait and see. If you are thinking of purchasing a property or selling a property or remortgaging before Brexit happens and would like a free no obligation estimate of our fees, then please do not hesitate to contact Leanne Wood via email on email@example.com.
Enter your email address for legal updates on Property Law.