After Brexit, the UK is now outside the European Union and it is gradually decreasing economic benefits from EU. However, the property market has good news; the price automatically falls rather than rising.
A senior economist from Royal Institution of Chartered Surveyors explained about the price change in property. He said the difference in price affects both development and the property market. And certainly, there is nothing like any price decline for a property in the country. But, the demand for a property is gradually decreasing due to the exit of people from the famous cities and that was recorded in the latest survey. However, many property buying agents predicted for an improvement in the coming days through price negotiation and, adding more potentials in the property market. The things will get in normal after few days as there are investors who are looking for investment in property anyhow. This drastically makes the sellers look more into the high-end property market. In amid, the discounts will also boost the deals making the market to go up, and reach a position where we can end this long-term situation.
Before the Brexit, the house price inflation in the UK was 5.4% which was recorded by Hometrack in the 2014-15. Now, it is increased up to 10.2% due to the decrease in the housing market. The impact of the Brexit vote created a slowdown in the sales volume. It was predicted that things will get to normal by the end of the year 2016. And, the progress will completely depend on the response of consumers and businesses. The reason which makes us focus on this matter is the decrease in interest rates by 0.25% in banking loans, and this makes the need for the mortgage even higher.
The 3% drop in the annual sales of property comparing to 2015 has marked a big difference and created pressure in both seller and buyers resulting in an opposite effect in the property market. Though, most people are supporting the current prices and hoping for an increase in buyer strength. By the time going, price demand in property is going to worsen because the UK citizens are evacuating at a much faster rate. The analysis from Office for National Statistics (ONS) has said that the mid-20 aged are moving out leading to decrease in the population count.
So, it increases house prices up to 85% making a typical home to cost £488,000 and in some parts, it is £216,000. Apparently, it is noticed that every 0.04% of the population is leaving each month perhaps resulting in no future solutions for this price-rise.
The managing director of West One Loans said there will be an overall rise in the property market by 11% by 2017 as the Property pricing in London has already fallen in 2015 and everyone anyhow managed to sell and buy their property with higher gains. And, today’s situation is slightly higher from the above situation. This indicates that there will be an end for the current issues comparing to London situation. And as usual, the property transactions will return to light up the property growth.