Opinions Vary on Future of UK House Prices Following Referendum
There is much speculation regarding the impact the Brexit vote will have upon the UK housing market. This speculation has led many opinions across a broad spectrum to circulate. Chancellor George Osborne believes the UK leaving the EU in the June 23rd vote could send housing prices on a steep spiral downward. Others believe the opposite impact will take place. The Building Society Nationwide sees the market remaining resilient to an exit vote.
The society believes the impact will result in a housing market which remains steady amid potentially economic uncertainty.
Joe Garner of Nationwide commented on the reaction by the market after the vote, saying: "Central expectation is that if this uncertainty lifts and the global economy gradually strengthens, UK economic growth will move back towards its long-term trend rate of 2% to 2.5% per annum".
"The household sector is expected to remain a main driving force, underpinned by continued healthy gains in employment and rising real earnings. We expect the housing market to remain resilient, with any dampening of activity from modest increases in interest rates offset by a strengthening labour market and an under-supply of housing.”
Although the housing market response to the vote is uncertain at this point, one sector is currently thriving. The remortgage sector continues to be strong and is expected to remain steady for several months. Lenders are continuing to compete heavily and with that borrowers are finding deals with low interest rates attached. Home owners can benefit from a remortgage by lowering the monthly mortgage payment as well as gain access to valuable home equity.