As a result of this, the price growth of property has been quite slow ever since the EU referendum. In fact, the price growth is expected to slow down even further over the course of the next five years or so.
While the fall in the house prices has not been as sharp, it is quite obvious that the number of sales of property in the London vicinity and the South East has remained scarce since the referendum.
George Osborne, who is the former Chancellor has given a warning regarding a fall of about 18% in the next two years after the Brexit. The prime reason would be a declining demand overseas along with an economic shock that will hit the nation.
Nevertheless, the upcoming potential dip is considered to be beneficial for the millions of young renters in the country who give off about half of their monthly salaries to landlords as rent for their houses.
According to Mr. Pryor, there is no doubt that a lot of uncertainty in the prices of the houses is caused due to Brexit. Whether it is a no deal or a deal, one thing is certain that the supply of the houses is driven by three Ds. As a result of this, it is likely that many people may want to sell their properties off. However, the real question is whether there will be enough people to buy them? This is because based on the figures and statistics, the house prices have not been affected significantly, although they have. But there has been a significant downfall in the rate at which the properties were being bought before the referendum.
Nevertheless, it is not likely that a crash in the house prices will occur. However, there is no doubt that the entire market has already slowed down a little..
This is because when people talk about cost of property or the price of houses, they basically talk in a general sense. However, the prices of the houses depends a lot on the area of the country in which one lives. Based on the recent data by ONS, prices in London have seemingly been fallen by about 1% at average. At the same time, the prices have increased in the Midlands and Scotland by more than 6% at average.
So whether brexit will cause a total crash in the prices of houses and property or not, is a question that has no definite answer as of yet. Nevertheless, the likelihood of a significant crash is quite less.
Nevertheless, in such a scenario, it is natural for one to wonder whether it is safe to buy a house due to all the uncertainty that exists due to Brexit.
There has been quite a lot of confusion with Brexit recently especially in relation to property. According to some people, the prices will go down while some people think that the prices may go up over the next five years.
Well, the truth is that it is impossible to predict as of now that what the future of the property market would be due to Brexit over the next five years. However, we can certainly look at a number of trends in order to shed some light on it. For instance, there has been a warning from the Governor of the Bank of England that the economy may suffer a lot in case a no deal Brexit is faced. As a result of this, there may be a steep rise in the interest rates, and the consumer prices may go up.
Nevertheless, it was expected that there will be a fall of house prices by as much as 30% over the next five years. According to the experts, the prices of the house may just come to a halt or rise not a lot. They were quite right though. According to the Office for National Statistics, there has been an increase in the price of houses in the United Kingdom by about 3.1% in the month of July 2018.
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