Inevitably, amidst ongoing negotiation for Brexit will come much speculation with regard UK property prices.
Will house prices fall, and if they do, by how much? In September, Mark Carney, Governor of the Bank of England, predicted that a no deal Brexit could mean house prices drop by as much as 30%. Whether you agree with his assessment of a no deal situation or not, there is still lingering dismay about the possibility of house prices falling.
However, whatever happens on March 29th, is there cause for concern? If your property falls in value, then the other properties in your area will decline in value. Likewise, if your house value were to rise by 5%, so too would similar homes in your area.
Falling house prices, in one sense, is positive for the economy as a whole, as it would enable first-time buyers to get on the market, which in many cases supports the children of those who are concerned about house prices.
House prices falling may even be beneficial for those that intend to upsize, as houses worth less will fall by less of a percentage, than homes worth more.
Conversely, those that might feel the pinch most are those intending to downsize, for the same reason as above. However, with that said, if you’re in it for the long run – and if 2008’s financial crash has taught us anything – it’s that house prices will indeed recover.
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