Brexit Britain and the UK Property Market

Jan 29, 2020

The countdown is on. The UK has got its affairs in order as it prepares a farewell letter to the EU, and the debates rage over the genius or absurdity of Big Ben chiming away at midnight on January 31st. 

After three years of “will they won’t they”, the UK and its departure from the European Union are about to have their Ross and Rachel moment. As we wake up on February 1st, the hype will be over, and for most of us, it will be business as usual. 

And yet, a non-EU United Kingdom poses many questions regarding what comes next. Perhaps most importantly is the situation around the UK property market. Will prices fall, or will the real estate industry see a Brexit boost send property prices firmly in one direction: up? 

brexit, banner brexit, brexit situation, property market

First came Boris, then came Brexit

Boris Brexit. Who is having a cheeky wager that he will change his name after “getting Brexit done”? Any takers? If you’re looking for a safer bet, then the UK property market might provide a better option. After the Conservatives won the December general election, property prices saw an increase, which was also referred to as a “Boris Bounce”.

The aftermath of Brexit, so far, looks like it could have a similar impact. The majority of markets – whether financial, property or otherwise – don’t like uncertainty, and with the UK’s future all but secured, the property market could flourish. A recent report from Rightmove revealed that sellers are more confident now there is a definitive stance of Brexit. 

Upward trends

The month of December saw 65,000 properties put up for sale with prices seeing an increase of 2.3%. The UK property average is now just over £300,000, which is the largest month-on-month rise seen in any January since the house price index started in 2002, some 18 years ago.

Rightmove also claims that the number of sales agreed has risen by 7.4% in comparison to this time last year. Even more encouragingly, The Sunday Times concluded that 52 postcodes in the UK had seen an increase in buyer demand.

What do the experts think? 

Property experts are also positive about a post-Brexit housing market, with the Rightmove director saying:

These statistics seem to indicate that many buyers and sellers feel that the election result gives a window of stability.

“The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home-movers to hesitate. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.

Emoov’s own Naveen Jaspal shares a similar viewpoint, saying: 

“The early signs of Jan 2020 are showing that sellers’ confidence has returned to the market. Emoov has received an increase of seller enquires who are ready to come to the market and have instructed emoov to take advantage of the market sustainability but also using emoov to capitalise on the fee savings in order to buy onwards.”

“Buyers in 2019 continued to purchase but a lack of properties in the market due to Brexit offered less choice for the buyers. In 2020 we expect with leaving the EU this week vendors will continue to commit to marketing through 2020 offering more choice to buyers and in turn we expect to see a growth in the property market. 2020 will be an exciting year for emoov, sellers and buyers.”

Selling your home in a post-Brexit world

There seems to be a general consensus that the entire UK has breathed a sigh of relief at Brexit coming to some sort of conclusion, no matter which way you voted. If you’re thinking of selling your home, now is the time to speak with one of emoov’s property experts who will suggest a market value sale price for your home and help you sell your property.