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Brexit and Its Effect on the Real Estate Industry in 2019

Brexit and Its Effect on the Real Estate Industry in 2019

As an inevitable result of challenging political waters in the UK, Brexit has finally begun to affect multiple industries including the real estate market. Though investors’ interest is still high with much of the current estates owned by international investors, it might be a long wait until these properties can match their purchase sale price

As an inevitable result of challenging political waters in the UK, Brexit has finally begun to affect multiple industries including the real estate market. Though investors’ interest is still high with much of the current estates owned by international investors, it might be a long wait until these properties can match their purchase sale price with the way things are going.

Politics and properties

What home buyers fail to realise when it comes to the market is that it’s significantly affected by the political stance of the UK. Older properties are the target of newer greener laws incorporating the need to improve and upgrade energy systems to commit to the London Plan’s goal of achieving a zero-carbon emission atmosphere in the next few years. Though it may be positive news to the ecosystem, it does deal a considerable blow to homeowners who have been cutting costs to make the most out of their rural yet durable properties. With investors seeing the UK as a dangerous place for investment, it might not be too long before they opt to pull out or decide to abandon their investments in favour of better chances in other countries.

The looming force of Brexit

The arrival of Brexit was always going to make an impact in the industry, but it was unsure if it would leave a positive or a negative spike in sales.

The UK housing market is now reportedly seeing its lowest property values in the past decade. The Royal Institution of Chartered Surveyors revealed statistical evidence that the market is about to dive down with both demand and sales expected to go down as time goes on.

An industry survey conducted showed that the recent price growth in the UK is at its lowest since July 2013, reaching a meagre 2.5% rise in prices from last year’s 2.7%. Further statistical data from The Office for National Statistics has predicted that a continuous decrease in prices will spread from central London to the deep end of the south-east regions.

Almost all of the UK has shown a weak response to the demand for housing. Much of it can be attributed to varying tax rates per region, while jobs and academic universities force individuals to migrate to temporary locations for the sake of a better commute. Except for the relatively untouched area of Scotland, buyer interest in regions has gone from a startling -18% to almost -35%.

Homeowners staying competitive

Though the market might be in its most challenging season yet, it hasn’t stopped investors and homeowners from doubling down on their properties. Keeping up to date with local housing regulations with regards to green laws is prompting homeowners to update their boilers and adjust their energy expenses. Even sectors like Surrey air conditioning companies have been affected by the move which gives a substantial boom in business to keep estates attractive and energy efficient at the same time.

Image: Pixabay.com

Source: https://www.theguardian.com/business/2019/feb/14/uk-estate-agents-house-prices-are-at-their-gloomiest-for-10-years-says-rics

Susan E. Lopez
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