Please explain why Brexit is so bad for the UK property market?

[PostBrexitInvestor]

Personally I do not understand why so many people see Brexit as a negative for the UK property market. Surely a release from the dying animal which is the European Union is a positive move? Let’s not forget that the UK never even adopted the euro. Opinions welcomed.

 

[Veronica]

IMO Brexit can only be good for the UK in the long run. There may be a period of hardship at first but long term I think the freedom to make our own choices, to trade with whomever we want to trade with, to restrict immigration will make Britain stronger. I see a total collapse of the EU in a few years and Britain will be stronger being out of it before that happens.

 

[PropEx]

I suppose we will find out if it is negative when the monthly house prices indices are released which will be any day now I think.

 

[Veronica]

House prices may well fall to begin with but that will be good for young people who are struggling to buy their first home.

 

[nmb]

Don't forget that the UK is the fourth largest economy in the world and if the rumours are correct some countries are already queueing up to sign individual trade deals. The fact that a UK exit from the European Union could, in the eyes of many, bring about its downfall surely highlight the weakness of the European Union?

 

[PropEx]

The problem with trade deals is that they take years sometimes decades to sort out.

 

[PropEx]

House prices may well fall to begin with but that will be good for young people who are struggling to buy their first home.

If house prices fall, that pretty much means that the banks aren't lending as much money which will make it even harder for first time buyers to buy!

 

[aurelie]

....why Brexit is so bad for the UK property market?

Why should it be bad?
I do think dropping prices are very good.

On professional real estate market, prices have already dropped by 30% in London. And this is just the beginning.....*popcorn*

 

[lookinginvest]

Personally I think discussing the London property market with the rest of the UK is something of a red herring because London is literally a law unto itself. Surely there must be some upside for the UK in being able to negotiate its own trade deals around the world? Let's face it, the European economy is not exactly setting the world alight is it?

 

[Veronica]

Personally I think a drop in prices can't be a bad thing as it will enable more young couples to be able to buy their own home.
Too many people focus on London when looking at how the property market is doing but that is unrealistic as what happens in London bears no resemblance to what is happening in the rest of the country.

 

[nmb]

I totally agree, the London property market is often discussed as if it reflects the whole UK market when this is just not true. The London property market is literally a separate property market within the boundaries of the UK.