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House Prices After Brexit
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Every day for the last week i have read conflicting articles about what is going to happen to house prices now we've left the eu. what is your option about it? if you were planing to buy or sell, have the current events changed your mind?
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Whatever the issues, the problem with making decisions about how 'Brexit' will affect them is that we don't yet know which type of Brexit we'll end up with.
If it turns out to 'hard Brexit' then the UK will leave BOTH the European Union AND the European Economic Area. That will satisfy those who want to get rid of the 'free movement of citizens' which currently exists across the EEA but (because we'll also lose the right to unrestricted trade within the EEA) will potentially lead to massive job losses (with perhaps 5 to 8 million people unemployed) and the near-collapse of the UK economy. Under such circumstances house prices might fall dramatically (by perhaps as much as 50%).
However if we end up with 'soft Brexit', where the UK leaves the EU but remains within the EEA, then we'll be in a position similar to Norway, where we have to abide by the majority of EU rules (including the free movement of EEA citizens across borders) but have no right to vote on what those rules should be. That will infuriate those who wish to block immigration from within the EU/EEA but leave the UK free to trade with the rest of Europe without restrictions. That type of 'Brexit' is unlikely to affect the UK economy dramatically, so house prices would be largely unaffected.
My guess is that we'll either end up with 'soft Brexit' or a reconsideration of the whole issue but, until the 'soft v hard' decision is made nobody can really predict what might happen.
If it turns out to 'hard Brexit' then the UK will leave BOTH the European Union AND the European Economic Area. That will satisfy those who want to get rid of the 'free movement of citizens' which currently exists across the EEA but (because we'll also lose the right to unrestricted trade within the EEA) will potentially lead to massive job losses (with perhaps 5 to 8 million people unemployed) and the near-collapse of the UK economy. Under such circumstances house prices might fall dramatically (by perhaps as much as 50%).
However if we end up with 'soft Brexit', where the UK leaves the EU but remains within the EEA, then we'll be in a position similar to Norway, where we have to abide by the majority of EU rules (including the free movement of EEA citizens across borders) but have no right to vote on what those rules should be. That will infuriate those who wish to block immigration from within the EU/EEA but leave the UK free to trade with the rest of Europe without restrictions. That type of 'Brexit' is unlikely to affect the UK economy dramatically, so house prices would be largely unaffected.
My guess is that we'll either end up with 'soft Brexit' or a reconsideration of the whole issue but, until the 'soft v hard' decision is made nobody can really predict what might happen.
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@ baldric well yes.... as chris said it all depends on what our relationship with the eu is going to be like. If we can still have all the business benefits of being in the eu everyone will keep their jobs. If we have no relationship with them then millions could loose their jobs.
maybe that's what all the uncertainty is about - the fact we don't know what type of parting we will have.
Are you a homeowner looking to sell or buy? has the latest news changed your mind?
maybe that's what all the uncertainty is about - the fact we don't know what type of parting we will have.
Are you a homeowner looking to sell or buy? has the latest news changed your mind?
In the short term I'd suggest that uncertainly causes folk to hold back for a bit, so the prices may fall fractionally to encourage buyers. Whether that would be lost in the noise of other factors affecting the price, I can't say.
After Brexit the changed conditions can create different scenarios. That's what you expect in a chaotic situation.
If it turns out that the UK leaves the EU and the EEA, due to EU pique ensuring total intransigence which then would result in them demanding the very same unreasonable conditions that caused us to exit in the first place, rather than go for a win/win situation, then it will depend on what results.
To trade with the EU we'd have to accept at worst WTO rules and tariffs. Which doesn't seem such a problem elsewhere in the world; and it is perfectly possible other agreements could be made to improve on that.
Should that occur one can always create a different trade area since many seem keen on coming to an arrangement.
Whilst this would cause short term turbulence there is no reason to assume massive damage to our employment figures nor to our economy; so really, how much affect is that going to have on house prices ?
After Brexit the changed conditions can create different scenarios. That's what you expect in a chaotic situation.
If it turns out that the UK leaves the EU and the EEA, due to EU pique ensuring total intransigence which then would result in them demanding the very same unreasonable conditions that caused us to exit in the first place, rather than go for a win/win situation, then it will depend on what results.
To trade with the EU we'd have to accept at worst WTO rules and tariffs. Which doesn't seem such a problem elsewhere in the world; and it is perfectly possible other agreements could be made to improve on that.
Should that occur one can always create a different trade area since many seem keen on coming to an arrangement.
Whilst this would cause short term turbulence there is no reason to assume massive damage to our employment figures nor to our economy; so really, how much affect is that going to have on house prices ?
I think house prices have fallen once in a hundred years ....
and now they are saying it will happen again - oo-er Mrs !
Buy _ I would wait as they might fall _ not London by the way
Sell - I would wait unless it is a fire sale
but you know if I knew the future I would not be on answerbank
I would be on the end of Blackpool pier
and now they are saying it will happen again - oo-er Mrs !
Buy _ I would wait as they might fall _ not London by the way
Sell - I would wait unless it is a fire sale
but you know if I knew the future I would not be on answerbank
I would be on the end of Blackpool pier
Hmm
Chris BC's answer is more on what will Brexit be like ?
and if I knew the answer - then I would be on the end ....
House prices must be dependent on land prices and remember what Mark Twain said about Land - "Buy it - they arent making it anymore !"
and yet there has to be a confidence element - which is the Brexit bit, Hard or soft, confidence on stability is not high.
If you are not planning to sell in the future
then I can confidently say - over ten years they will go up ( coz they always have in the past )
Chris BC's answer is more on what will Brexit be like ?
and if I knew the answer - then I would be on the end ....
House prices must be dependent on land prices and remember what Mark Twain said about Land - "Buy it - they arent making it anymore !"
and yet there has to be a confidence element - which is the Brexit bit, Hard or soft, confidence on stability is not high.
If you are not planning to sell in the future
then I can confidently say - over ten years they will go up ( coz they always have in the past )
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