With the EU referendum approaching, the general consensus is that it will affect house prices in this country. Some say that within a few years leaving the EU will cause a crash in the property market, with others saying staying will continue to stabilise the market. However, current trends show that house prices continue to rise.
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As if there weren’t enough points to consider on the question of whether to leave or remain in the EU, the rise in property prices to levels that are unrealistic for first-time buyers continues to weigh heavily on the population. But will the EU referendum really change this?
Brexit Break
Many news sources have discussed both sides of the story, with The Guardian reporting that George Osborne predicted that Brexit would cause a fall in house prices.
Money Expert says that Rightmove, the leading property search engine, reports that house prices are at an all-time high, with the average asking price currently at £310,472.
Rental Rises
As a result, rental prices have also increased, with the average London home hitting £1,500 per month. It’s in stark contrast to other parts of the country, where for example you could rent a flat in Gloucester, such as the ones advertised with local agents http://www.tgres.co.uk/properties-to-let, for a fraction of the price.
The two seem to go hand in hand, as more buyers get priced out, they turn to private renting as an option to set up home. And whereas in the past some landlords have taken advantage of the situation and hiked rental costs, recent changes to taxes have begun to discourage buy-to-let investors, meaning more reasonable rents.
As well as the tax changes, incentives to assist new buyers in saving a deposit and eventually buying their home with schemes such as Help to Buy have gone some way in helping first-time buyers get a foot on the property ladder.
So will prices continue to rise after the referendum? There is no way of knowing either way. We can try to forecast what will happen, but no one will ever really know until the votes have rolled in and we are a few months down the line. Even then, will we really see any changes? All we can do is wait and see.