How will a no-deal Brexit affect the property market?
The last few weeks has seen the UK seemingly veer from one crisis to another while the Prime Minister has forlornly tried to negotiate a Brexit deal acceptable to both the EU and the Houses of Parliament. The latest vote, just yesterday, saw the House of Commons vote against a no-deal Brexit by an alarmingly small majority of just 4 votes. Leaving the EU on WTO terms is however still a possibility, if the EU refuse to extend the 29th of March deadline.
Understandably, anyone considering buying or selling at present has one eye firmly on the ongoing Brexit negotiations. But should Brexit affect your decision?
While the continuing and unshakeable concern is that a no-deal Brexit will cause a financial crisis akin to that of 2008, this is not necessarily a bad thing for buyers and property investors. If property prices crash, perhaps it is the time to buy – the old adage tells us to buy low and sell high.
Likewise, if you are selling and buying in the same area, and particularly if you are upsizing, a possible property market crash may not be the worst time to move – as long as you are not in negative equity, it may be possible to find a bigger home much cheaper than it would otherwise have been, while smaller properties will generally not lose as much value in a market slump as the larger properties.
Traditionally, the new homes market is the first to suffer in times of financial crisis, but this Government has, to their credit, invested in new homes. Initiatives such as the Help To Buy scheme have made buying a brand new property far more viable than it might have been in previous times of crisis.
While I certainly can’t predict the future, and while my personal opinion is that we would have been far better off remaining in the EU, I do feel that there are always going to be opportunities for the smart investor, and for those brave enough to step into the market when all others hesitate. If I can’t stop Brexit, then I might as well try and embrace the possibilities that arise from it. Who’s with me?
If you are looking to move house or buy another property, please contact Andy Roscoe at Meaby & Co for advice: andy@meaby.co.uk or call 020 7703 5034.
