Despite prevailing fears over Brexit, the latest studies show that it may not all be doom and gloom in the years ahead. According to experts, the housing market is actually on a trajectory not to fail, but to thrive.
Authorities suggest that property prices will in fact be aided by an economy that goes from strength to strength, with the value of homes increasing by an average of £52,000 by 2021 – a growth equating to almost 25 percent.
A Booming Property Market
The trend that has been uncovered is not something property owners will have to wait for. Already, prices are on the increase, with the Centre for Economics and Business Research (CEBR) reporting that average values have risen by £9,000, to £220,000, in 2017 alone.
By 2021, this means that a typical home should be worth roughly £272,000 – an upwards increase of 23.6 percent.
As CEBR economist Kay Daniel Neufeld explains: “Already, towards the end of 2016, indicators pointed to a stabilisation in the housing market – a trend that has continued in the first months of 2017.”
This is not to say that Brexit will progress without impact, but nor is it to suggest that it will be the disaster prophesied by its detractors. In fact, progress will continue, albeit it at a slower pace of just under five percent per annum for the next two years or so.
This limited growth will, however, precede a property boom, with prices predicted to pick up from 2019 onwards, increasing by around 5.7 percent that year, before rising by roughly six percent annually for the two years that follow.
Driving Forces
A thriving economy will go some way towards boosting property prices, but CEBR suggest that the main impetus will be provided by a shortage of houses, with demand outweighing supply.
In addition to this, the top end of the market is likely to be stimulated by foreign property investors drawn by the low value of sterling.
As expert Alex Gosling elucidates: “House prices are still being supported by a lack of property stock, and although buyers are taking longer before committing, now that Article 50 has been triggered, any reservations about making a purchase may ease.
“It wouldn’t be at all surprising if house price growth beats expectations this year.”
What Does This Mean for Homeowners?
This is very good news for homeowners, many of whom were worried about how Brexit would impact their sale.
As mortgage broker Shaun Church explains: “Homeowners will be thrilled to hear that house price growth isn’t expected to be slowed down by Brexit, particularly as growth is currently relatively subdued compared to recent years.
“Those who decide to sell will [actually] see a bigger return on their original investment.”
For those looking to sell with Andrews Online anytime within the next four years, this is eminently reassuring. Britain’s property market has not only proven itself resilient, but capable of bouncing back from the brink better and stronger than ever before.
