Brexit has had a major effect on the UK in general, let alone on the housing market. Brexit has caused lots of uncertainty which has, consequently, led to politicians and business owners questioning the decision whilst trying to come up with solutions for what may be on the horizon. This uncertainty has also hit large amounts of the population, which has led to a number of protests and marches against the Brexit movement. In essence, Brexit has caused a lot of confusion and led people to question what the future will hold. In relation to the UK housing market, we also have seen lots of uncertainty and questions raised. It would, therefore, be fair to argue that Brexit is having a major effect on the UK housing market. This can be seen particularly in London; however, the effects of Brexit are noticeable in other areas of the UK also. Whether these effects will be continually negative, or continue to last, is a question which is not easy to answer. Let us, however, explore the effects that Brexit is having on the UK housing market.
First and foremost, it could be argued that Brexit is causing the UK housing market to decline. This can be seen in London in particular, since property sales are continuing to slow down, thus suggesting that major uncertainty is prevalent among potential buyers. What is more, house price growth has been falling; as of January, house price growth across the UK was at its lowest for six years. Therefore, one could argue that the large number of questions surrounding Brexit have increased the amount of uncertainty. This has led to less consumer confidence, hence meaning that fewer people are likely to invest in property, which has caused sales in the UK housing market to stagnate.
As a result of the Brexit movement, real estate in Germany and France seems to have become more attractive, thus showing how the UK housing market is declining. According to BrickVest, there was a 20% increase in investment incentive in France and a 7% increase in Germany. We can, hence, see how the uncertainty caused by Brexit has led to other locations becoming more attractive, therefore putting more strain on the UK housing market.
In conclusion, I think it would be fair to argue that the UK housing market has been put under serious pressure as a result of Brexit. The question now arises: how does one remove the UK housing market from such a position? It will be difficult to do so which places the UK housing market in a vulnerable position.