After what feels like an eternity, four years and six months to be precise since the UK voted to leave the European Union, Britain and the EU have finally agreed on a Brexit trade deal. But what might this all mean for house prices in the UK?
Experts have already warned that Brexit could put a halt on house price rises and have even suggested that they could fall during 2021. Despite this, Brexit has turned out to be a much more positive result after what looked like a ‘crashing out of the EU’ scenario without a deal.
There is, however, still a great deal of uncertainty with Brexit and what the future holds with some significant terms still yet to be agreed as part of the overall deal. Only time will tell what impact, if any, this will have on the UK housing market.
Even though Nationwide Building Society reported an annual rise in house prices of 6.5% in November, the highest rise since January 2015, the Office for National Statistics (ONS) has predicted house prices to drop by 8.3% by the end of 2021 and then not to recover until the end of 2022.
Vik Roda, CEO and Founder of Mortgagez said: ‘As proven in previous years, once unemployment starts to rise, affordability starts to decrease which will in turn block house price growth. It will be interesting to see if the government now considers extending the current stamp duty holiday in line with the 3rd lockdown.’
Property experts have also stated that extending the recent stamp duty land tax (SDLT) will be on the Chancellor Rishi Sunak’s mind as we enter another national lockdown, which would take pressure off buyers trying to complete by the 31 March deadline as well as ‘keep demand alive’ in the housing market during lockdown.
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PLEASE NOTE: Article written 6 January 2021. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. *
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: January 2021 060121 MZ000165
