If Brexit were to happen how quickly do you think house prices would be affected?

Miss_Samantha

It all depends on what drives prices up in your area.

Leaving aside the psychological effect(which might be significant):
- Foreign investors concentrate on a few areas, which may be affected instantly.
- The majority of areas are driven by standard housing demand, which will, I think, mostly be influenced by the economy, and so any effect may take a while.

DaftyDuck

Any fall in house prices will reflect general economic woes following a Brexit vote, so few (except those already wealthy) will benefit. The quantity of property will be severely limited (after all, who'd sell at a loss if they don't have to?), as will mortgage availability, percentage mortgage, and property security (after all, which bank wants to lend in an unstable falling market). Probably. Well, possibly. Maybe.

Anyway, let's vote Brexit and, afterwards, leave the NHS in Gove's capable, gentle hands, give social policy back to caring Iain (he did such a good job last time) and, given there'll be some form of coalition, good ol' Nige can have the Treasury (as he's had such good and wide experience being a third-rate commodity trader and [STRIKE]fiddling [/STRIKE] making the most of his expenses). Boris can be President (why limit a fellow of such talent to PM), and the Empire will rise again, for a thousand ye.... mmmaybe not, maybe better not....

martinsurrey

rajarr wrote: »

I doubt it would be that sudden but as a FTB I wouldn't complain if it was...

You would complain when you lose your job, or cant get a mortgage, because prices will only drop when supply goes up, or demand goes down.

Supply wont go down with Brexit, so for prices to drop, demand must fall.

Lower demand means less people are willing and/or able to buy at a certain price point, which in general means mortgage rationing and unemployment.

Pixie5740

Supply and demand fuels the housing market. If house prices fall it will because there is less demand. Why would there be less demand? Fewer jobs available, less money available to borrow, neither of which are good for FTB.

Look at Aberdeen. At one point house prices were rising faster than London. Oil companies couldn't hire enough people and so any idiot (including myself ) could get a high paying job here. The oil price falls. Oil companies have mass redundancies and some of the luckier ones just have hefty (30% pay cuts) which then has a knock-on affect to other businesses such as taxis, retail, restaurants because people have less money to spend. House prices fall. Great for FTB if you still have a job and haven't had to take a massive pay cut.

rajarr

martinsurrey wrote: »

You would complain when you lose your job, or cant get a mortgage, because prices will only drop when supply goes up, or demand goes down.

Supply wont go down with Brexit, so for prices to drop, demand must fall.

Lower demand means less people are willing and/or able to buy at a certain price point, which in general means mortgage rationing and unemployment.

HouseBuyer77 wrote: »

You may do when the banks response to such a sudden drop is to freeze all mortgage lending to anyone with a less than 40% deposit (or indeed freeze it entirely).

I think demand may be curbed slightly if we left the EU, I have a reasonable deposit so the only way it would put me in a worse position would be if I lost my job which I don't feel any more likely due to the referendum

sheff6107

... except his own MPs would have kicked him out way before any of that.