In? Out? Shake it all about. You do the Brexit Hokey Pokey and you, erm, well, nobody seems to know.
Regardless of whether you want to Remain or Leave, here we are—waiting. All the while the UK economy ticks along, but there is still plenty of uncertainty over what leaving the EU entails for Britain.
In the aftermath of the 2008 recession, the UK property market has been on the rise, with house prices increasing year on year. However, since the referendum result of 2016, that calmness has given way a layer uncertainty which sees some people acting with an element of caution when it comes to buying and selling.
And the Article 50 extension only adds fuel to the fire about what happens next. As property experts, we can’t say what the final deal will be, but we can comment on the current state of play in the UK property market.
House prices since Brexit
Following the referendum, house prices did slow in pace, though it’s hard to attribute the slowdown to Brexit specifically. In 2017, prices also saw a slight dip as the spring months turned into the summer, having increased previously.
However, the closer we get to Brexit, the more it seems like that house prices will take a dip—if only marginally.
House prices across the UK took a more considerable post-summer dip than usual in 2018, going from £232k to £230k. Then, in December 2018, they were on the rise again according to the Office for National Statistics (ONS).
The Brexit effect
Looking at the numbers year on year since 2014 it’s clear to see that house price growth has slowed from 2016 onwards. The biggest question most people have centres around whether or not Brexit is solely responsible.
From a purely black and white perspective, it’s hard to argue against Brexit being the signifier for the dip in house price growth. But, like most things, there is always a grey area attached—and it could be a case of the market finally evening itself after rapid growth in years gone by.
Brexit could simply be a side act to something that was going to happen at some point or another. It’s also worth pointing out that house transactions didn’t suffer much in the wake of the referendum. There were more house sales in January 2019 than the same month the year before, according to HMRC.
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