THE momentous decision to exit the EU in last week's referendum poses many unanswered questions -...
THE momentous decision to exit the EU in last week's referendum poses many unanswered questions – including, of course, what will happen to house prices and the property market in general.
Many economic experts had predicted a drop in house prices if Britain chose to leave the EU – yet the National Association of Estate Agents have predicted that house prices won't fall as a result of the Brexit vote.
However, whether you are looking to move, get on the ladder or have a portfolio of investment properties, a lot will depend on what happens with interest rates.
"The pound dropped before the decision was even confirmed, and some believe this could lead to an increase in interest rates to combat pressure on inflation. Some homeowners would face an increase in their mortgage and it is true that house prices may fall, but that is not always a bad thing. It would be good news for first-time buyers who are struggling to get on the property ladder and there is even an argument to say that more people may put their home on the market if they fear prices will drop, which would certainly help buyers in the local market where demand continues to outstrip supply.
"Alternatively, the Bank of England may choose to keep interest rates as they are, or even lower them, to try and alleviate the short-term impact.
"Whatever happens in the short term, the fact remains that people will continue to move home and there are not enough houses to satisfy demand. If we do see a drop in prices, storms will pass and prices will recover – and nobody is better placed to spot those trends than a local, trusted high street estate agent."
Here at Belvoir we pride ourselves at being customer focused and a trusted local estate agent if you would like a free no obligation market appraial or just some general local market knowledge please contact us today on 0151-231-1613 or firstname.lastname@example.org