Brexit impact on property
What’s the Brexit impact on property? So, Brexit happened. When it was first announced back in March 2017, there was so much fear and confusion cascading around the country. It caused people to stop buying properties. This lead to a drop in house prices and most of the UK took a hit. These setbacks can be tough to rebound from. In fact, some parts of the country still haven’t recovered from the monstrous 2008 crash. Liverpool is an example of this but in 2016, even these places started to recover and threatened to explode. Then, Brexit arrived and the property parade was rained on and dampened by fear.
You can’t really predict a recession but you can estimate. Usually they occur after big expansions.In 2008, when the market crashed due to over-lending by banks, it took around 4 years for things to start to return to normal. The banks had stopped lending which meant people weren’t purchasing properties. This caused property values to plummet. However, in London, property prices began to soar again between 2011 and 2017. In some areas, the valuation of units doubled in just 5 years. However, as with Liverpool, Brexit arrived and the fear slowed the growth down.
Then, the Boris bounce came. Mr Johnson was elected and we knew for sure that we were going to leave the EU. This little piece of confirmation gave investors and developers enough confidence to resume business as usual. Property prices started to rise and estate agents began smiling again. Samuel believes there will still be some fear while negotiations with the EU are ongoing. He predicts 2020 to be an uneventful year in terms of the value of properties which is why he likes the idea of buying properties in 2020. In 2021, all terms and negotiations will be done and agreed. That’s when he envisages a big boom.
If you are buying properties this year, be sure to put rental income as the top priority rather than capital appreciation. That way, you will be largely unaffected by whatever the market decides to do.