14:26, Tue, Mar 14, 2017
HOUSE PRICES, will they rise or fall after Article 50 is triggered? Prime Minister Teresa May is clear to make the move and begin negotiations to leave the European Union (EU) – but what effect will this have on our housing market.
Express.co.uk spoke exclusively to Will Herrmann, Director of private property developer West Eleven, who explained that any effects will be insignificant – and the welfare of the property market relies on how any leaks throughout the process are received.
“It’s inevitable that Article 50 is going to be triggered and the timetable for it happening has been well documented,” he said.
“Sentiment will change with the success (or not) of the negotiations and how well they presented to the public.”
The property expert believes upmarket areas such as Fulham, with a high French population, will flourish but that most other areas of the UK won’t prosper as a result of the Brexit news.
What will Brexit do for the British housing market? Will house prices be lower or higher?
House prices rise slightly post-Brexit according to Will.
He told Express.co.uk exclusively: “I think prices will stay flat with possibly some very modest increases but the breaking effect on price rises and the cause of the slowdown in transactions in the market is more caused by other factors such as Stamp Duty Land Tax (SDLT).”
“As far as London is concerned, I think that the effects of Brexit are largely priced into the market,” the expert claimed.
“There were large corrections in Chelsea and Fulham immediately after the referendum and these areas now appear to have turned a corner.”
Will many people continue to buy from overseas?
There will continue to be more overseas buyers in Britain, especially from China, Will said.
“The effect of the devaluation of the pound has led to an opportunity for overseas buyers.
“Globally, Chinese and other far Eastern buyers want to save their money protected by a strong democracy, judiciary and property laws.”
Thanks to the poor state of the Euro there will be more investment from buyers closer to home to – who will be looking for stability in a more reliable market.
“The Euro looks set for a continuing period of instability too. These factors continue to make UK property appealing,” Will explained.
Will it be cheaper or more expensive to rent?
Renting will also become yet more expensive after Brexit.
“This is a function of the general seizure in the property market – as transaction volume sales slow, more people are renting,” Will explained.
“This is combined with a lack of supply and increased costs to landlords.”
“The entire effect of Brexit is of course unknown, but the UK is a huge market place in its own right and a global trading nation. I would expect the effects in the housing market to be relatively insignificant compared the other headwinds it faces.”
The pound is falling since the Prime Minister was given the go ahead by Parliament to trigger Article 50.