The wealth of financial and economic implications of an EU exit stretch far beyond the UK property market, however, for many UK residents the impact to property prices will be their primary concern as their home is the most expensive asset they are likely to ever own.
With an EU referendum in the UK still looking probable despite Prime Minister David Cameron’s best efforts. However, earlier this week, we predicted an EU exit could see UK house prices drop by 5%. View the full article here.
Because of this, we asked some UK homeowners what they will think to the nations house prices if we were to leave in EU.
Overall there seems to be a mixed view. But in these uncertain times it comes to no surprise that many UK homeowners are sitting on the preverbal fence.
Elizabeth, 33, from Sherborne.
“Honestly, I can’t see why whether or not we’re in or out of the Euro would have any effect on UK house prices. To be honest, if people genuinely did think that leaving would bring prices down, then I think that would give them more of a reason to sign up for it. Because times have become so unaffordable here. Honestly, I don’t think it really matters which way the prices go. But if it stopped people who aren’t British coming here and buying up our homes and let all the people that come in from abroad and buy them as investments in London and other cities. If leaving stopped that, then I think most people would think it would be a great thing. But honestly, I don’t think it will make one ounce of difference. I think that the housing market is specific to the UK and it’s not dependent on whether or not we’re a member of the EU.”
David, 34, from Aberdeen.
“It’s really hard to predict what’s going to happen when we leave- if we leave the EU. But I think prices of houses are going to go down because less people are going to have money, and people are not going to spend money as much. And also the availability of people renting houses is going to drop,so less people are going to be renting. We’re not going to be getting new renters, and it’s going to be quite difficult for landlords to sustain the demand. So I think the prices are going to go down, that’s just my opinion. Thank you.”
Craig, 44, from Kingston upon Thames.
“I think if the UK leave the EU I think house prices will probably fall. I don’t think anyone really knows. But I think that’s more down to the fact that house prices are due to fall anyway. I think they’re very high, they’ve been rising too much, we’re due a crash, we’re due a bubble, whatever you want to call it, a correction. All these famous fabulous statements that these politicians and economists come out with. But actually I don’t think it’s related to the EU but it could actually offer a bit more stability because we’re actually going to be our own bosses not having to worry about what EU regulations make us do. But I think personally house prices are going to fall in general anyway just because they’re overinflated at the moment.”
Ashley, 36, from Birmingham.
“I think house prices would probably go down, to be fair. The reason being I think we’d have less people here and so there’d be more of a supply, if you like. I think there’d be more houses available so the economy as a scale would make it so more people could afford more houses. The problem is with the numbers of people going up, there needs to be new housing built but they tend to be through the council and so forth. So people trying to get onto the ladder are finding it more and more difficult. I think if less people were to come in, there’d be more homes available because a lot of schemes are already being built. So I think in the long term it would be better off for people,especially to get on the ladder because houses are that expensive anyway. So I think they’d actually go down. So that’s my opinion. Whether that would happen or not I don’t actually know.”
Charlotte, 34, from Milton Keynes.
“I think house prices will actually go down a little bit. I do actually think we’re in another housing bubble at the moment. Just generally I’ve said it for the last few months after buying a new build property, and how much it’s gone up by. I think it’s gone up by about 60,000 pound between Marchlast year and February now. Which is quite big and obviously stopping people getting on the housing ladder yet again. I don’t know, I think also if we leave Europe, it might make it a little more difficult for buy to let landlords. Which in a way, I think is better in a way, because it means thatyounger couples can get on the housing ladder a little easier. Because they won’t be being outbid by these investors.”
Abi, 35, from Dronfield.
“If we will the EU, I suspect the house prices will go down, there won’t be such a demand for housing as potentially we won’t have as many immigrants so the lack of demand should probably bring the prices down.”