From house prices to mortgages, what will happen to the property industry when the UK finally leaves the EU?
Whether the UK will leave with or without a deal, what will this mean for property prices and mortgages – all we know at this moment is still up in the air. However, Stephen Kerrigan, Mortgage Advisor in Doncaster has come to the rescue once again with some tips and advice, but he has warned that much is likely to change within the next few days and weeks.
Stephen of MortgagesRM – Fee Free Mortgage Advisor said that when it comes to the economy and house prices, Brexit is not the only issue to affect the economy. We are in fact in the midst of a worldwide pandemic, which has had its share on affecting the economy on a scale not seen for hundreds of years.
The Brexit impact has already affected prices already, including the rate of the pound against other currencies, share prices, bond and interest rates. On the day when we get a final confirmation of deal or no deal, there is likely to be some movement, but it’s probably not seismic. A No deal will likely see the pound and the UK markets dip.
After the public voted for Brexit back in 2016 – yes four years ago! There were fears that house prices could cause a crisis, and then the Bank of England warned in 2018 that a no-deal Brexit could lead to the economy shrinking and house process falling to 30%.
However, once the withdrawal deal was agreed, predictions become more optimistic. For instance, there is a stamp-duty holiday until March 2021 that is driving house prices, with the housing market seeing a 7.6% rise over the past year.
Whether the stamp duty cut has actually been of benefit remains to be seen, but for now Brexit is secondary to the effects of the current pandemic and whether or not the stamp-duty holiday will be extended.