The housing market is facing uncertain times post brexit. In the grand scheme of things we’re still in the early days, with many months of negotiations needed before the UK formally withdraws from the EU and as such, this level of uncertainty means that the future of the housing market is currently looking very changeable.
Concern Surrounding Interest Rates
Interest rates naturally have a distinct effect on the housing market. The Bank of England recently cut rates in response to the leave vote, but there are still concerns that rates may soar in the future. A large increase in interest rates would put a strain on the finances of landlords who are hoping to widen their portfolios, however flats to rent in Gloucester may be more difficult to find, as rental demand increases with landlords reaping the rewards of unaffordable mortgages.
Value of Sterling
As we have already seen, predictions surrounding the fall of sterling have been proven. If sterling was to see any further reduction in value, foreign investment in London property may fall away. Whether this would be a blessing or a curse on the wider market however is currently the subject of much debate. Buyers are nervous and as the Sunday Express reports a reduction of turnover in housing is expected, meaning brexit could be a useful negotiating point when it comes to purchasing property for a good price.
The uncertainty about the future is arguably the most damaging aspect for the property market. Investment has certainly reduced since the referendum was called, however when properties are limited in supply prices increase. As this also translates to the rental market, individuals looking to rent gloucester flats through TGRES may increase and as such, landlords could benefit greatly from this. Lenders may also start to offer a range of tempting buy-to-let rates.
As the referendum approached, the Treasury warned that leaving the EU could cost households £4000 each year in reduced income. It is currently unclear whether this will prove to be the case, however there is the potential for concern surrounding the ability of tenants to pay increasing rents. However landlords who keep on top of new developments and closely watch the market should still find plenty of opportunities in this post-brexit environment.