What does Brexit mean for the Housing Market

Dominic Raab MP handed in his resignation letter on Friday morning and with rumours circling that he hadn’t even seen the Brexit plan until the last minute (he was the Brexit Secretary), we can only hope that the Secretary of State for Housing, Communities and Local Government, James Brokenshire is taking a more hands on approach to his role in Housing after taking over from Raab a few months ago.

With the ongoing Brexit/Theresa May PM chaos ensuing, her cabinet resigning and a vote of No Confidence spoken about, here at Oracle Group, we felt it was time to see what the plans mean for the property market…

 

Brexit Housing Market

 

  1. Deal or No Deal – while Brits wait to hear the outcome surrounding Brexit, they subsequently put their house moving plans on hold. Of course, this is causing a halt to house sales and lack of housing stock, particularly across the south as confidence dips. The Royal Institution of Chartered Surveyors, (RICs) has even recently announced the property market is at its lowest for six years. Who wants to get a mortgage and risk being in negative equity if the market flops as a result of leaving the EU?
  2. Bricks & Mortar – the unstable trading agreement could make it harder for developers and contractors to buy in materials and stock from Europe, which will push their prices up, eventually affecting selling prices. As if buying a home isn’t pricey enough?
  3. Workforces – Already, there is a shortage of labourers in the construction market and while the Brexit plans guarantee the rights of those already living in the UK, those who wish to stay will need to apply for ‘special status’. Causing unnecessary red tape for those from Europe, who were once attracted to a buoyant job market in the UK. The Office for National Statistics already suggests the number of Poles, Latvians and other eastern European nationals working in Britain fell by 5% last year, so a lack of skilled labourers could most definitely be a problem.
  4. Wary Investors – Investors are warier when it comes to investing in deals, whether they be residential or commercial. As a result, reigns on funds are held even tighter due to uncertainty in case a shocking downfall in the market means assets need to be sold off quickly. In Teresa May’s 585-pager on Brexit plans only three paragraphs have been dedicated to the UK’s financial sector, which has been said to put the city of London at risk as somewhere to invest and dabble in numbers!

 

By Vicki O’Hare

PR Senior Account Manager