Will it make it, or Brexit?
Predictions have been thrown about left, right and centre. In December, Berkley Homes complained that Brexit would mean the UK has less influence, fewer jobs and lower growth, and therefore needing fewer new homes built.
This would mean that property prices could drop for a period – great for new investments, helping people get on the property ladder and lowering the age of first time home buyers.
It is also interesting to note that foreign investors would still most likely be attracted to invest in the UK. Being in the EU is not what sealed the deal for past investors, so why should it affect future investments if Brexit takes place?
Obviously, some owners would call it a day and leave in the event of Brexit, EU institutions such as the European Bank for Reconstruction and Development would relocate, taking key staff with them. Some argue that other banks will relocate their European HQs — however this was also said when we opted out of the euro, and it didn’t happen.
Many people seem to be acting that a post- Brexit company would want every EU national living here to upsticks and leave. Why? If they are contributing to the economy then this makes no sense. Only the low paid or unemployed would find it more difficult to work here but it is irrelevant as they are highly unlikely to be investing in property anyway.
Will non-EU nationals be affected? We highly doubt it. The economy benefits from Russians and people from the Middle East, however what attracts these international buyers to London are economic and political stability, a legal system based on honest and fairness and also a vibrant culture; none of which is threatened by Brexit.
On the other end of the spectrum, a lot of property is bought by investors attracted to the UK’s property prices, with some investors having the intention of sending their children to school or university here. This again begs the question: why should Brexit affect them?
Brexit is advocated by those who see it as a route to freedom from heavy–handed regulation. The irony is that, in the case of the housing market, Brexit would be very likely to lead to increased regulation.