With the EU referendum vote taking place in the UK next month (JUNE 23 2016), the NAEA and ARLA have issued a joint report on the expected impact of a Brexit on average house prices in the UK.
The report, compiled by the Centre for Economics and Business Research, forecasts that average house prices will go up whether the UK votes ‘yes’ or ‘no’ on 23rd June. However, the report suggests this would be at a slightly lower rate if the vote was to leave the EU due to people wanting to maybe relocate.
If the UK votes to remain in the EU, then by 2018 the price of the average home would cost £303,000. If the UK votes to leave the EU, the price of the average home will cost only £300,800.
This slower rate of growth following a Brexit would be caused by a lower rate of investment in London resulting in foreign companies choosing to relocate from the capital, and a reduced demand for commercial and residential properties. This impact in London would then influence the UK property industry nationwide.
Experts predict a Brexit could also spark a labour shortage of house builders in the UK. However, a Brexit could make it easier for first time buyers to get a foot on the property ladder due to the lower property prices. Although any transactions may be delayed in the short term until the period of economic uncertainty ends.
