Buying after Brexit- especially if house prices crash

Monica27 · 20 July 2019 at 11:36PM

So with Barclays letting us down on the house we wish to purchase & not knowing if anyone else will lend us the required amount (with reasonable interest rate) until after April 2020 (so to have 2 years self employment tax returns evidence), there’s a very good chance we will be going into rental in September/October.
With Brexit looming we are wondering what will happen if property prices do crash? Will nobody sell ?
Does anyone know/remember what happened after 2008 crash? Would banks not lend as much as they are doing now? Will interest rates rise?
On one hand we are thinking atleast we will have cash in the bank for deposit, but on the other hand worried what if nothing suitable comes up for us to buy...

Filo25 · 21 July 2019 at 12:44AM

Always hard to predict, but I think if we go ahead with a No Deal Brexit on 31st October that would likely have a significant megative impact on confidence and the housing market, that said I still feel that scenario isn't as likely as some are making out.

And yes if we do start to see weakness in property prices and in the broader economy then lenders will tighten criteria, I think that is pretty much inevitable, although it is equally possible there may be further government intervention in the housing market to psupport it.

Probably worth being aware of it as a potential risk, but realistically it is hard to plan for a situation that is still so fluid and uncertain.

ACG · 21 July 2019 at 11:03AM

There was a lot more at play in 2007.

It affected the world. Brexit will affect the UK and maybe the EU but it is unlikely to go much beyond that.

Funding dried up in 2007 which combined with mass redundancies meant supply outstripped demand - ie less people in jobs probably meant they were forced to sell up.

If house prices drop significantly after Brexit, you will probably find there is more than just leaving the EU causing it - mass redundancies again for instance.

Buying after Brexit- especially if house prices crash

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