2 Sep

mortgage finder

Brexit warning on house prices

The price of property in the UK could plummet in the wake of a no-deal Brexit. Accountants KPMG have predicted that house prices across the country could potentially drop by 6.2 percent next year if the UK leaves the European Union without a withdrawal agreement in place on October 31.

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Housing stock will be key

However, KPMG also suggests that house prices will RISE by 1.3 percent if the UK strikes a deal with its European partners by the withdrawal date. Regardless of the effects of Brexit, KPMG says the lack of housing stock coming on to the property market could, in fact, help keep house prices relatively buoyant. According to the KPMG report, London and Northern Ireland would be the regions most badly affected by a no-deal Brexit, while the accountancy firm suggests house prices could fall by between 5.4 and 7.5 percent across UK regions and by an average 6.2 percent nationally.

Uncertainty in regions

The report comes out in the week that Parliament returns after the summer recess with controversy over the Government’s plan to push ahead with preparations for no deal. Prime Minister Boris Johnson has prorogued Parliament – effectively putting its decision-making into abeyance – until October 14, with commentators suggesting this is being done to prevent MPs and peers introducing any legislation to prevent no deal. The effect of this latest, controversial move by the Government has been to introduce even more uncertainty into the wider economy and into the property market specifically.

Market will recover

KPMG’s report states: “Overall, while a no-deal Brexit could dent property values in the short term, it may make less impact on one of the fundamental factors driving the market: the stock of regional housing. “Housebuilders are expected to reduce the supply of new housing in some regions in the short term as a response to a deteriorating economic outlook. “So, while there will be fallout from the initial economic shock following a no-deal Brexit, the market is expected to recover more ground in the long run.”

Look to Homeward Legal for conveyancing services

Both buyers and sellers looking to secure their transaction before October 31 should be looking to instruct a conveyancing solicitor who can act swiftly on their behalf. Talk to Homeward Legal’s team now on 0800 038 6699. We work with a nationwide panel of property law firms who have the expertise needed to steer a property sale or purchase through the essential conveyancing process quickly and efficiently. You can get a no-obligation quote for conveyancing services now. With our No Completion Protection, you can be assured you won’t lose out if your transaction fails to complete for any reason.