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The 23rd of June 2016 was the date when the UK population voted to leave the European Union and now, more than two years further forward, many people are suggesting that we are no further forward. There has been an enormous impact on life in the United Kingdom and there will likely be further shocks and alterations that the country will have to deal with. However, with two years passed since the vote, it is fair to ask how Brexit has affected the property market.

In 2016, the housing market in the United Kingdom was valued at an estimated £6.79 trillion. This is a figure that is 3.65 times the level of GDP and as such, it is hugely important to the economy. Of course, there is also the small mater that the housing market shapes where people live, making it an essential component of everyday life in the country.


There were negative predictions for the UK property market after Brexit vote


In the immediate aftermath of the vote, there were many specialists predicting a tough time for the UK property market. In the initial shock, the value of the pound dropped, and uncertainty is bad for the UK housing market. With a rising cost of raw materials leading to the cost of building houses rising, lenders re-evaluating who they loaned money to and many households deciding against moving until there was greater clarity surrounding the economy, there was a stalling of the market.

However, the fall of the £ encouraged foreign investment with buyers from abroad, who were able to obtain better value for money in the UK. This stabilised the market, in the short term at least, and over the past two years, it would be fair to say that the property market has remained robust.


House prices have risen since the EU vote


There have been localised shocks and the London housing market has eventually slowed down, or seen prices fall in some areas, but as of April 2018, the average price of property in the UK was classed as £226,906. This is a 3.9% rise on the April of 2017 figures and it is a 6.6% increase on the figure from the time of the European Union Referendum. In this regard, Brexit hasn’t had too much of a negative impact on the UK property market.

Even though the rental market in the UK is growing, there is an acceptance that property is still regarded as one of the smarter investments during these challenging times. The benefits of bricks and mortar provides comfort and confidence for investors, which is another factor in how the UK property market has remained in a stable condition throughout the political and economic upheaval.


While the uncertainty surrounding Brexit continues, the UK housing market is in competitive shape, and there is no need for negative or despair. If you are keen to make a move, contact Deakin-White on 01582 343 548 and we will do our best to assist you.


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