Brexit Effect on House Prices?

[WigglyBlossom]

My DH is due to leave the armed forces very soon and we will be finally buying our first house. Does anyone have any data on what effect Brexit may have on the housing market and interest rates?

There’s a great deal of speculation, and wishful thinking in both directions (some people wanting to get on the ladder want them to drop, others needing to take equity out obviously don’t). The short answer is no one can know for sure.

It’s also market dependent at present. Many areas of London and the South East have dropped, but some haven’t. There’s also little stock available as people are waiting for certainty to sell. Elsewhere in the country there are reports that things are still flying off and prices are holding strong.

Where are you looking to buy? There have been several threads on homes and property about this, but no one can say for sure.

House prices tend to be based on affordability. So the current high price of housing is mostly due to the low cost of mortgages.

The problem is that when house prices fall is likley to be because of higher interest rates.

The Brexit effect may come in if import tariffs and costs of customs push up inflation, making the BoE raise interest rates.

We'll probably settle in the West Midlands as we have family nearby.