After a very uncertain 4 and a half years after the public voted to leave the EU, the Brexit deal came into effect at the beginning of this month. But, what does this mean for the UK housing market?
The housing market has remained resilient throughout the last few years as political and economic uncertainty seemed to surround many other sectors. It's difficult to fully predict how Brexit will impact the housing market, but many people feel as though it will not be effected in the short term.
Let's take a look a few predictions below.
House prices are more likely to be impacted by the UK's economic recovery after the pandemic and job uncertainty.
If we were to see a significant increase in job loses due to Brexit, then we may see a slight drop in house prices. Many experts in the property industry have already forecasted that the house price growth will slow down during 2021, however some argue that the prices will not fall or at least not as much.
Housing Market Demand
Research has told us that homebuyers make their decision based on mortgage availability and employment rates [source: This is Money.] The interest rate on mortgages has been at an all time low which is primarily down to COVID-19, with many stating that they feel that the Bank of England could lower the base interest rate into negatives.
Due to a growth in lenders confidence, more mortgage products have been put on the market which has made it easier for homebuyers to secure mortgages for their property purchases.
As the Stamp Duty Holiday ends on March 31st 2021, the demand in the UK housing market will remain strong throughout the next couple of months. It's also worth noting that many homebuyers have reassessed their home needs due to COVID-19 and spending more time at home; this means that even when the Stamp Duty Holiday ends, moving home will likely remain at the top of many people’s agenda.
The housing market has remained strong throughout the last year, with transaction levels and values climbing since the market reopened after the first lockdown in 2020. One thought worth noting is if people are confident enough to buy a home in the middle of a global pandemic, they could also be confident enough to buy post-Brexit.