Last Updated: 09/06/2016
Tags: Brexit What Impact If Any Will It Have On The UK Property Market
Unless you live on a remote desert island it would be difficult to avoid talk of a possible exit, or Brexit as it’s been coined. So what would the impact be on the housing market be if there were an exit from Europe? It’s difficult to say or to know the real impact it could have, any opinion would be speculative at this stage - some economists are stating that a Brexit could cause UK house prices to drop by up to 5% nationally. At the moment property investors do seem to be sitting back and waiting to see what happens, the pound also dropped by nearly 250 pts yesterday against the Euro, after the latest Brexit poll showed the leave campaign to be edging slightly ahead.
The International Monetary Fund (IMF) recently announced that it had downgraded the UK’s monetary growth, it stated: “a British exit from the European Union could pose major challenges for both the UK and the rest of Europe. Negotiations on post-exit arrangements would likely be protracted, resulting in an extended period of heightened uncertainty that could weigh heavily on confidence and investment, all the while increasing financial market volatility.”
The information available for voters still seems to be really confusing, leaving around 20% of voters not sure whether to vote to “stay” or to “leave”. Leave campaigners want to be freed from EU red tape, stating that the UK would be free to make their own decisions. The Leave campaigners also state that immigration is causing the loss of jobs, however being part of Europe costs the UK around 0.5% GDP (£9billion) and in return the Confederation of British Industry (CBI) states that we receive between £62bn to £78bn in return annually.
There is much to consider before we cast our votes on 23rd June, if we stay in Europe then we will continue to be controlled by Brussels, but we will sustain the rewards of being in Europe, if we leave then it’s an uncertain path, one that could see us struggling in the short term but perhaps being better off in the long run, but the truth is it seems that nobody really knows. We will just have to wait and see.