Article 50 has been triggered! The UK property market is not set to see any major upheaval with the formal start to the two years of negotiation to leave the European Union, and might even benefit from an expected slowing in the economy.
Experts point out that the market did not see any huge effect from the decision to leave in the referendum last June and prices have been rising steadily. While price growth might slow, this could be good news for first time buyers who are seeing affordability getting worse. Alongside that, a slight slowing down of our economy should mean that the likelihood of interest rates rising is kept low, low interest rates brings low borrowing costs!
Fionnuala Earley, chief economist of Countrywide, pointed out that expectations before the June vote that house prices would collapse were very wide of the mark. ‘House prices are still rising across the UK and continue to grow in London, which is arguably more sensitive to Brexit. But, over the medium term, it’s the effect of the outcome of negotiations on the UK’s economic performance, particularly jobs that will determine the effect on housing market prices and activity,’ she said.
Source: propertywire.com
