To Brexit or Bremain? Is the UK’s property market in danger?
UK voters will head to the polling stations on June 23rd 2016 in their drones. Their votes could change the shape of the country – and its property market – forever.
The EU referendum has been a hot topic so we ask, what will leaving the EU mean for the UK’s property market?
Popular lender, Nationwide, has shown that property prices increased by just 0.2% in April.
Economists and property experts believe that first-time buyers, overseas investors and landlords are being particularly cautious in the run up to the EU referendum.
The decline follows a flurry of investment in March where landlords rushed to beat the 3% rise in stamp duty taxes which is now applied to second homes and BTL housing in the UK.
Will there be a crash?
Business Insider UK has reported that the UK’s property market is showing signs that a ‘crash is coming.’
The article states that a decline in buyer enquiries, rising prices, the imminent threat of an increase in interest rates and the uncertainty surround the EU could all lead to the market crashing.
However, many experts have been quick to correct rumours of a ‘crash.’
Estate agents such as Palmer Capital have said that a slowdown in the market is typical in the run up to an election or vote.
The Evening Standard has reported that UK’s commercial property market has experienced a ‘dry spell’ in the run up to the referendum.
What will happen to interest rates?
The Telegraph has reported that UK ‘house prices will fall and mortgage rates will rise’ if the UK decides to leave the EU.
“It’s already clear from the Treasury analysis that for example, there would a significant shock to the housing market, that would hit the value of people’s homes, that would hit the cost of mortgages”, Chancellor George Osborne has warned.
However, sceptics have dismissed the Chancellor’s claims as ‘manipulating’ with many saying that a vote to leave will have no real impact on property prices or interest rates.
Is the UK’s property market in danger? What do you think will happen to the UK’s property market if the country leaves the EU? Tell us what you think…