Whether you are a supporter of Brexit or fear what it going to bring, it is still interesting to watch the economy and see what affect it is having. Now we are just moving out of April, a General Election is coming and politics seems to be almost farcical at times, just how is this affecting house prices?
Looking at April, the answer is not that good. With an 0.4% fall in the average price of houses to £207,699 it looks like Brexit is having an effect on the housing market. This is down to rising inflation and low wage growth, and will a 0.3% fall seen in March this is the signs that things are on the downturn.
The government of course will say that this is to be expected as the next few years will be hard on the economy, but it will then pick up. This is of course dependant on just how successful the split between Europe and the UK is. The problem with this of course is that every day we see worrying news on how the negotiations are going.
So, what will this mean for the British home prices moving into the future? Well we’ll have to watch Brexit to see the result of that. The economy could see an uplift and house prices could rise again and everything will be okay. We’ll just have to wait and see.
The fact is the United Kingdom is going through changes at the moment that causes worry, especially in the economy. While house buyers may look on in interest and hope for further drops in the market, house owners looking to sell will be hoping for a more stable price on their homes. What we’ll need to see is which political party wins the General Election and what changes they put in place.
The real answer to the problem of house prices and the economy in general is that it is a matter of wait and see, especially with the current climate. While it is expected that the Conservatives will win the General Election and Theresa May will continue with her plans for the Brexit, what if another party was to win? This would be a huge chance and would probably result in even bigger changes to the economy and house prices.
Should we be worried? The answer right now is no. Brexit is a change that is going to take time, and the economy will be affected by each piece of news coming from it. While house sellers may not be happy with the affect this will have on house prices, they will just have to wait it out until the economy begins to show strength once again.