Reports on 14th September via the BBC suggested a no-deal scenario for Brexit would result in a catastrophic situation of the housing market, the chief headline being a 35% drop in the value of housing in the country. This has no doubt impacted the housing market significantly and industry insiders may have also noticed very slight cracks emerging in their local market places.
However, Mark Carney has since gone record as saying the Bank are NOT anticipating a 35% drop and this was merely one of 3 worst case scenarios the bank suggested COULD happen… but what is the likelihood?
Historically speaking, you would have go a long way back to find a housing crash of this magnitude. During the last financial crash of 2008, prices fell by around 15% (and have since bounced back and surpassed those previous high values anyway).
Realistically speaking, the confusion currently being caused is having more of a detrimental impact on the housing market than anything else. Given that the housing market is enjoying the current historic interest rate lows, you would suspect sellers would simply hold off selling rather than sell at a much reduced price. If interest rates were to rise to 4% (as the worst case scenario predicted), this would obviously increase the range of impact but surely this would affect those seeking fiancé rather than the millions who have locked their fixed rates down.
Aneisha Beveridge, an analyst at Hamptons International points out “The average landlord who sold their property last year owned it for eight and a half years and homeowners stay put even longer.
“Economic theory suggests that short term disasters very infrequently impact on long term growth, and this is true for the housing market too,”
Should you be worried regarding your property and want some #FREE, no obligation advice, contact WitLet and WitSell on 01376502500 or email us at email@example.com. We will advise you how best to proceed and always have contacts within the industry that may be able to help you if we can’t do it ourselves!