Despite record low price growth, UK citizens remain convinced that the housing market is in a good and stable place. Recent research produced by mortgage lender Halifax, claims that Britons are confident in the market’s stability. But, to suggest the overwhelming majority of citizens are happy with the current state of affairs would be incorrect.
According to the data collected by Halifax, 58% of the public believes that residential property prices will increase in the next year. But, this percentage of people also believe the prices will rise less than 5% from the current rates. 23% of the survey participants think the prices will remain the same, while 14% predict a decrease.
So, what has caused the apprehension from UK citizens over the future of the housing market? Once again, this circles back to the possibility of leaving the European Union. Many experts predicted economic troubles following the vote to break free from the union. As expected, house price increases have fallen nearly 10% since the vote.
Many citizens fear for the economy in the aftermath of Brexit. The fear stems from how long the actual exit negotiations can last. Undoing nearly 50 years of treaties, laws, and agreements can take a long time. Britain officially has two years to bargain its way out of the EU. Will the economy and the housing market continue to plummet during this extended period of time?
Changes could come to the government after a general election as well. Citizens have to wonder if this will negatively affect the economy as a result. Democrats are said to have a different view on Brexit. Would the absence of a hard Brexit be beneficial to homeowners and home-buyers? Or, would the economy become a roller coaster of unpredictability?
While the majority of Britons seem confident in the current housing market, many question its future at the same time. Homeowners’ hope is that Britain’s exit of the EU strengthens its economy for the short-term and long-term.