Managing director at Prinvest UK Aaron Campbell shares his thoughts on the post-EU housing market:
“The consensus among British property analysts appears to be that Britain’s exit of the EU will lead to either a slowdown in property price growth, or an outright fall in prices.
Affordability of housing is a major concern across the UK especially amongst domestic buyers and investors, particularly in London which has one of the world's highest property prices, according to real estate agency Knight Frank.
Britain’s decision to leave the EU could be music to first time buyers and investors ears. Mortgage payments and interest rates could come down further as a result of the referendum, the Bank of England have already stated Friday morning that they will support the economy as the negotiations over Britain’s withdrawal takes place and this could ease payments for those on some types of mortgages, and for new buyers and investors.
One note of caution is that with historically low interest rates already, the bank has minimal room to make significant cuts so its impact may be limited, although still a realistic proposition.
Britain's decision to leave the EU should not necessarily be a cause for concern for the property market.Britain and London in particular has always had a draw for foreign investment; a stable asset, offering good returns, in a structurally undersupplied marketplace. Investors in UK property are not only from Europe but mainly from much further afield. This could be reasonably expected to continue, especially as investors purchasing decisions tend to be long term.”