Brexit’s Effect On The Average UK Homeowner
Newspapers, blogs, websites and pundits all said that UK homeowners would see a drop in property prices. Some say it would be as much as 10% in most of the country while others predicted 20% for London. This did not come as a surprise considering a majority of people who vote for Brexit went into it thinking that it would bring property prices crashing down.
The actual effect of Brexit
Statistics show that the passing of the referendum by Britain to leave the EU did not put as much of a damper on housing prices as people would have expected. In fact, Savills, a well-known estate agent dealing with international clients, has reported that it has seen soaring investments from foreign entities despite Brexit.
This is mostly because, as expensive as property is in London for locals, the slump in the British pound (induced by Brexit) has made those prices a little cheaper for foreign investors who have seen their currencies soar against the pound.
Are Britons still buying and selling?
The surprising thing is that Britons are still optimistic about buying and selling property. In fact, almost 80% of homeowners say that Brexit has had not impact on their property prices so far. As things stand now, property prices have gone up by 0.6% in February. That is up from 0.2% in January and projections show that the prices will steadily keep rising throughout the Brexit period.
Yes, the referendum undoubtedly had a negative effect on the British Pound for a little while there, but the ship is getting steadier by the day now and the average UK homeowner hasn’t had any real reason to panic as of yet since their property prices have remained largely the same. Except for London which has seen a slight dip, but that was to be expected considering the fact that the region has seen 86% growth in just 8 years.
In some of the well-known boroughs in London such as Chelsea, Bromley and Kensington as well as Merton, sellers have had a difficult time offloading their properties to locals and have had to reduce their asking prices. But overall, Brexit has not completely crushed the will of the people to buy and sell property across the country – at least not as much as it was expected to.
Property Market Crystal Ball
While the scenarios pointed out are reasonable educated guesses, they are still guesses and are not written in stone. For instance, a new Concorde can be unveiled tomorrow and supersonic travel could drastically change the property market instantly.
We don’t know all the factors, so it’s pointless to stress yourself on countless “what ifs”. I remember Rick Otton in one of his podcasts where he talks about how good investors have a money making plan when (not if) the market shifts. Therefore, you need to know how to position yourself in a money-making situation when the market is rising, when it is stagnant, or when it is falling.
Robert Kiyosaki also mentions a similar lesson in his events. Instead of speculating all the time and hoping for luck, it’s best to strengthen your prospects by preparing for all three scenarios.
What about you?
In the quest to find out Brexit’s effect on the average UK homeowner, we cannot forget about you, our loyal reader. How has Brexit affected your property prices or enthusiasm to buy and sell property in the UK? Are you more interested in buying property now or are you waiting for the prices to drop? Would you invest in HMOs or do you think single homes are a better bargain? Share your experience with us and let us determine how Brexit has affected your property owning ambitions, if at all.