Why will Brexit affect house prices?

6th March 2019

Brexit is looming and negotiations are still in progress. There’s lots of talk about how it will affect the property market - but not much explanation as to why. In this blog, Maslen Estate Agents will explain why and how Brexit could affect property prices.

When is Brexit?

Theresa May triggered Article 50 on the 29th of March 2017, which means the UK is scheduled to leave at 11pm UK time Friday, 29th of March 2019.

How has it affected the property market so far?

As negotiations are still in progress, it’s unclear what deal the government will actually get, and how it will affect the property market. This uncertainty is causing people to panic because it’s unclear what the outcome will be.

Following the Brexit referendum in June 2016, house prices stagnated. However, this could also be due to the usual pattern of prices growing in spring and plateauing in summer, which also happened in 2017.

However, house prices suffered a bigger post-summer dip than usual in 2018. The latest ONS House Price Index shows that they raised slightly in December, putting the current UK average house price at £230,776.

How will it affect property prices in the future?

The governor of the Bank of England, Mark Carney, has warned the cabinet that the impact of a no-deal Brexit could be as catastrophic as the financial crisis that previously crippled the UK economy. The statistics are often scaremongering - stating that house prices could fall by as much as 25 - 30%.

Although base rates have increased recently, they are still at a record low - just 0.75%. Back in the late 1980s, the base rate was as high as 15%! You can find out more about borrowing money for property on our blog.

The changes to housing prices is still dependant on where you live. For example, while house prices might have dropped in London, they have risen in Scotland. In Brighton, there will always be a demand for housing as it’s an incredibly desirable area. This means that if prices continue to lower, they are more than likely to bounce back at the same speed they dropped, as we have seen in previous recessions.

What’s your advice on selling and buying with Brexit coming up?

Mortgage prices are near historic lows, so for first-time buyers, now is still a great time to buy. Borrowing money is still affordable, and fixed-rate mortgages would mean if rates increase after Brexit, you won’t be affected. Second steppers who are looking to move up the property ladder can also benefit from lower property prices and mortgage rates.

If you are a seller who is waiting before selling in the hope that house prices rise, we would advise that the key to selling is being realistic with your asking price.

Selling your home for less than you’d like might seem like a bad thing, but really it means the new property you buy will also be much cheaper. This means you can get a lot more for your budget.

If you’d like advice from our property experts, get in touch.

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    Miss Matthews Kipling Avenue

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    Mr Beddington Brading Road

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    Dr Crichton The Ridgway

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    Mr & Mrs Penton Sycamore Close

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    Mr Witten Lewes Road

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    Ms Gray Lewes Road

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    Mr & Mrs MacKay Lewes Road

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    Ms Lyons Woodingdean

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    Mr Alderton Ladysmith Road

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    Ms Mayanobe Aymer Road

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    Miss Coleman Buller Road

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    Mr Edwards The Ridgway

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    Mr Wells Bishops Road

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    Ms S Hike Blackthorn Close

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    Mrs O'Connor Hove

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    Mrs Tripp Woodingdean

  • Thanks David, all very professional.

    Mrs Flowers Foxdown Road

  • Sharon was excellent, she kept us informed at all stages and was a really calming objective influence in the process.

    Ms Frederick Channel View Road

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    Mr & Mrs Scarboro 1 Pevensey Road

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    Mr John Mogridge Woodingdean

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    Ms Warren Hove

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    Ms Cianchetta Selhurst Road

  • All very professional, kept updated throughout. Very pleased - Would recommend. 

    Mrs Hammond Hove

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    Ms Rees Ticehurst Road

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    Miss Jasper Taunton Road

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    Mr Pilgrim Lewes Road

  • Ben was particularly enthusiastic and helpful. Martin, Paula, Sam and Will are all hard workers.

    Ms Goodey Franklin Road

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    Mr Standing Newmarket Road

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    Mr Patrick Gladstone Terrace

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    Mr & Mrs Heer Lewes Road

  • From start to finish the sale was dealt with in a thoroughly professional manner.  

    Mr Gibbs Lewes Road

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    Mr T Mole Cromwell Road

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    Mr Field Mafeking Road

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    Mr Tibble Lewes Road

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    Ms Longley Kingsbury Street

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    Mr Thorne The Avenue

  • I have bought and sold 7 properties, and this was the best experience of an estate agents services I have found.

    Mrs Shepherd Hertford Road

  • Harvey was helpful and easily reachable at the beginning of the process and Sharon kept us informed and was always happy to help.

    Ms Murch & Ms Mapa Ticehurst Road

  • Excellent communication and advice throughout. It felt very reassuring to be in good hands.

    Mrs Brooker Buller Road

  • Sharon and her team could not have done more in what was a difficult sale. 

    Ms Daly Woodingdean

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    Ms Curtis The Ridgway

  • The staff were very helpful, an excellent service. I would recommend you to others.

    Miss Hockly Fiveways

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    Mr Hope The Brow

  • Paula's role was brilliant. Having someone office based and available was so appreciated and her promptness an impressive service - every Estate Agent...

    Ms Wynn-Jones Baxter Street

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    Mr & Mrs English The Ridgway

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    Mrs Shea Selborne Place

  • All the staff I dealt with were excellent. Sharon worked really hard to complete the sale.

    Mrs Bent Falmer Gardens

  • Sharon was excellent - kept us well informed, thank you so much!

    Ms Waters Cowley Drive

  • Best Estate Agents ever experienced - professional, approachable, competent and exemplary. 

    Mr & Mrs Guest Riley Road

  • As always, an excellent service. 

    Mr & Mrs Field Lewes Road

  • Paula is amazing!

    Ms Aspnall Gladstone Place

  • It was a long, drawn out process that the people at Maslen helped me through, without the impression that it was a chore. So extremely professional...

    Mr McLagan Lewes Road

  • Hugely impressed with Ben & his team.

    Mrs Mead Upper Lewes Road

  • Paul Wilkinson was extremely helpful and efficient. The only problem was the vendors solicitor and Paul warned me of this. A good transaction all r...

    Mr Lavender Fiveways

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    Ms Schulte Bear Road

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    Ms D Edmonds Horton Road

  • Paula was fabulous and we felt really informed and supported. 

    Mr & Mrs Walker Lewes Road

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    Ms Easterbrook Bear Road

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    Ms Ansloos Lewes Road

  • It was an amazing experience, everyone involved were fantastic. 

    Mr & Mrs Knight Woodingdean

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    Ms Tucker Willow Close

  • Very professional service. Thank you!

    Miss New & Mr Jackson Buller Road

  • Paul was absolutely brilliant. 

    Mrs Tasker Fiveways

  • Thank you Paul and Archie, you gave an excellent service, as well as Kelly. I look forward to working with you again. 

    Mr White Fiveways

  • Please thank Paula at Lewes Road - Excellent service. 

    Mr & Mrs Nuthall Lewes Road

  • All agents at Maslen were extremely helpful and polite from the beginning to the completion of sale. 

    Mr Johnson Fiveways

  • I found the service to be courteous, friendly and efficient.

    Mr Upton Buller Road

  • Compared to your rivals, your service was excellent

    Ms McGrigor Milner Road

  • Very, very happy we chose you, felt right from the start! Thank you!

    Miss Blackadder Coniston Court, Holland Road

  • Sharon was amazing! She kept us up to date the whole way through the process. We cannot fault Sharon or the rest of her team. 

    Mr & Mrs Ashley Woodingdean

  • In February 2016 I was looking to buy and sell very rapidly. Competition among buyers at the time was very high. Sharon @ the Woodingdean branch sh...

    Ms Helen Lyons Woodingdean

  • Best Agents in Brighton.

    Mrs Field Tarner Road

  • Very pleased with the service. Many thanks to Sharon and the boys!

    Mr Flynn Woodingdean

  • I wish we had used you to sell our property! Nice to meet honest people, who are genuinely interested in helping. Very pleased.

    Mrs Porter Taunton Road

  • Very impressed with all dealings with Maslen. Paula Carter was in particular very knowledgeable and helpful. 

    Mr McBlane Hove

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    Mr King Hove

  • The Woodingdean team were very friendly and approachable.

    Mrs Palmer Pitt Gardens

  • Graham Griffin provided us, and continues to provide us, will all-round excellent advice. We trust his knowledge and expertise.

    Mr Blackmore & Ms O'Sullivan Financial Services

  • The whole team were excellent, each one of them felt like family. Sharon had a lot of sorting to do at times but coped very well, a true profession...

    Mr Vernon Woodingdean

  • A very positive experience - I had most contact with the Fiveways office and they were so friendly and helpful.

    Ms A King Balfour Road

  • We were very impressed with the Nick from start to finish. 

    Mr & Mrs Smith Lewes Road

  • Nick and Paula are total stars! They were incredibly supportive and present throughout. Thank you!

    Miss O'Haire Hove

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    Mr & Mrs Sawyer Shaftesbury Road

  • A completely painless experience from start to finish. Thank you.

    Mr Woolven & Mrs Bessant-Woolven Lewes Road

  • Very happy with the service we got from you guys, everyone we dealt with was extremely friendly, professional and helpful. Thanks!

    Mr Brown Titian Road

  • You were amazingly helpful throughout - a real pillar of strength with a very difficult sale.

    Mrs Parkin Fiveways

  • Very impressed with the efficient and friendly service, the staff were a pleasure to deal with. 

    Mr & Mrs Gill Lewes Road

  • Service exceeded my expectations overall at all stages of the process - I wouldn't hesitate to recommend you. Thanks. 

    Ms Greene Lewes Road

  • Sold within 2 weeks for asking price "excellent!"

    Mr Grundy Bishops Road

  • Exceptional service throughout the process - should we decide to sell in the future we wouldn't hesitate to use your agency. You're a cut above the...

    Ms Windels & Mr Barham Fiveways

  • The sale was dealt with swiftly, professionally and successfully. Thank you Maslen!

    Mrs Lincoln Hove

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