How Likely Is A Post-Brexit UK House Price Slump?written by Bella Palmer
The most popular position on UK house prices within the context of Brexit is that once there is some clarity, with the exception of a
But how likely is
Sure, there is a housing supply deficit in the UK that other analysts and those in the property point to as the argument why prices still have space to grow. But if people simply can’t afford to pay more and debt being more expensive means they have to borrow less is there any way for prices to rise much further before a real and significant increase in incomes? Before that happens, if it does, how likely are we then to see house prices see a significant correction in the wake of whatever form of Brexit does
Of course, much depends on what kind of Brexit we do eventually have and how bad an impact that has on the UK’s wider economy. One positive is that if the economy does run into serious trouble interest rate hikes by the Bank of England will almost certainly be paused. And while the current interest rate benchmark is still a historically tiny 0.75% and there isn’t much scope for it to be cut it could conceivable be taken back to zero again. The combination of stricter mortgage qualification conditions
The pessimists on post-Brexit UK house prices point
However, as always, what the reality will prove to be is very difficult to tell. If there is a significant or mild price drop it will be welcomed by many as an opportunity to buy. The question is how quickly prices will then bounce back.
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