The effect of BREXIT on the property market

We were warned by the UK Treasury that house prices would be hit by Brexit. Prior to Britain voting in the referendum, the UK Treasury said that house prices could crash between 10% - 18%.

Now, after the British electorate voted to leave the European Union, there is evidence this prediction may be coming true. Asking prices for UK properties on the market have fallen on average by 0.9% (-£2,647) so far this month.

However, according to Rightmove, this is within usual expectations for the run up to the summer holiday season. Buyer demand in the two weeks following the referendum result was consistent with 2014, although down on 2015. 2014 was not distorted by the election however, so is a better basis for comparison.

Whilst the imbalance between housing demand and supply remains a long term problem in many parts of the country, in the run up to and immediate aftermath of the referendum there was an understandable drop off in buyer enquiries.

With most Banks and Economists predicting a recession, house prices may fall a lot further from here and despite it being too early to draw any medium or long term conclusions, the market will nevertheless need to be closely watched.

"The real effect of Brexit is yet to be seen but despite all this uncertainty the Conveyancing team here at Frettens is always looking to take on new instructions", says Solicitor and Head of the Conveyancing Team, Clare Hallett.

Our Conveyancing Team, based in Christchurch, also cover Bournemouth, Poole and the New Forest. For a free initial chat, please call 01202 499255 and Clare or a member of the team will be happy to discuss any questions that you may have.