Will house prices rise or fall with Brexit

Green3

What will be the effect of Brexit on house prices?

Thrugelmir

Fall. There'll be mass hysteria that the end of the world is nigh.

mayonnaise

Green3 wrote: »

What will be the effect of Brexit on house prices?

House prices will fall dramatically.

Actually, all other things will be cheaper as well as we will be free of the shackles of VAT.
Everything VATted will reduce by 20% in price. (or 5% if reduced rate)
The £120 billion shortfall in tax revenue will be made up by scrapping NHS translation services for Romanian plumbers.

mrginge

Green3 wrote: »

What will be the effect of Brexit on house prices?

There will be no houses, since we only have them thanks to EU regulations. We have no way to build more or maintain existing ones without the EU to help us. Can't you remember how we all lived in caves banging sticks together before the EU?

This is because we are incapable of operating outside the EU project.

Fortunately, we will be able to make decisions about whether we want to spend public finances to focus training people to build houses, or we could subsidise UK companies to employ young British people to do the same. Or we could adjust our tax model to give incentives to British companies to use British manufactured equipment and goods in the process of building houses. Or we could decide to focus migration on encouraging people from any country who have house building skills to come here and live and work, safe in the knowledge that they will be making valuable and desirable contribution to the UK economy and at the same time enabling us to manage and plan future public service needs.
Or we could look at international companies who are skilled in this area to set up here. Again we could look at tax or subsidy incentives (mind you this won't be possible with any EU companies since they will have banned us from any kind of economic activity :rotfl:)

But that won't matter because we only have jobs, pay, legislation, and any kind of social framework due to the EU.

prowla

Assuming the migrants right of residence no longer applies, then they will gradually wander back to their EU homelands and so reduce the pressure on housing, which will then impact the premium pricing of properties.

wymondham

House prices will fall. Hopefully this overdue correction will allow the market to work again and normal people can buy normal houses...

mystic_trev

Frankly, I couldn't care a toss if they fell 50%. It's a bit different if you're mortgaged up to the eyeballs though.

economic

i hope they do fall so i can buy another!

HornetSaver

mystic_trev wrote: »

It's a bit different if you're mortgaged up to the eyeballs though.

Which anyone whose outstanding mortgage is for more than half of their current house price would be.

Therein lies the real problem. House price growth has, in political terms, become too big an industry to fail.

CLAPTON

depends upon what actually happens

if immigration continues more or less as at present and there is no great financial shocks then demand will continue as at present.

London will continue to experience population growth of about 100,000 pa and flat building will continue at round 25k-30k pa : property will continue to rise in price.

Elsewhere property will comiue rising as population overall will increase by 600,000 and house building by about 125,000.

Basically bad news for young people wanting to live in a family home but older people already living in a comfortable home will see the value of their property rising.

Because house values are included in GDP via the imputed rent system, it will increase the notional GDP figure.

So GDP goes up and large numbers of people are actually poorer with worse housing.

however if immigration is limited to a 10s of thousands when we can expect to see a levelling off or even falls in house prices.
as imputed rents will fall this may show as a fall in GDP : 'remainers' will use this nonsense figure to show that better housing standards per capita makes us worse off.

onamissionEU

Clapton has hit the nail on the head. Assuming that Immigration will be slowly capped and the general flow of people slows down, so house prices in the north might fall a little and in London/SE they would level (doubt there would be any significant fall).


In the short term only "market shock" would potentially have any impact on all markets but once the dust settles you will barely notice any change what so ever.