When there is a large economic change, the property market sees a large effect of that change. Post Brexit it is important to consider the various changes that might occur in the property market for the future. There are many ways for property investors to gather this information and it is important to take in all of them.
Attending property conferences in the UK can be a great way to have all of your questions answered as well as network with new people. It can be a helpful way to offer a competitive advantage to property professionals and investors. When you are in need of some added information, a property conference can be an excellent source. While property conferences can be a helpful way to gather information, here are some basic pieces of information and predictions of the effects that Brexit might have on the property market.
Commercial
Any issues that were happening before Brexit have now been exacerbated by recent changes. Businesses have been remaining localised and have not been branching out as much because of sky-high rents. This has caused a slowdown of growth in the market which can become an issue. The fear has caused many businesses to shut down further branches and find a way to localise their business to maintain their financial intake.
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Student Housing
Many students from other countries are drawn to the English education system because of the language familiarity. British universities have been making their housing more attractive to entice students and draw them into their universities. The problem now is that these universities will not be able to sustain this for much longer because funding will not be made available to them any longer.
Residential
The occurrence of Brexit is predicted to cause a significant change in the residential housing market. It could cut London property prices by 30%, while the prices of luxury homes could be cut as much as 50%. These predictions aren’t entirely unwarranted since UK property prices did in fact decrease by 9% since June, but this actually caused an increase in sales. In the face of a Brexit property price drop, it seems that there is actually an increase in sales caused by people who rush to buy a home at these prices.
One issue is that although banks have promised not to increase interest rates drastically, it is becoming more challenging to get a home loan. If the banks make acquiring a mortgage more challenging this can become an issue for the market.
There are many predictions suggesting that the market will continue to drop over the next year, but there is no certainty on this. Although professionals are utilising this time to make predictions and assessments on what will happen in the future, it is important to take everything into account. One of the biggest issues is that this may become a self-fulfilling property for the market. Continuously pushing the idea that the market will rebound instils a proper confidence in the market and keeps things going strong.
