How Would a Brexit Affect the Property Market?

With the June referendum on whether the UK should leave the EU just around the corner, property experts and politicians have been forecasting how a ‘Brexit’ would impact the property market. A vote to leave the EU will undoubtedly affect home-owners and those trying to get on the property ladder, whilst a vote to stay may also bring its own implications.

It is hard to accurately predict the effect of a Brexit on the UK property market at large, but there are many benefits and complications that could arise both from staying and leaving the EU.

What You Should Know

George Osborne is among other spokespersons to predict that a Brexit would result in house prices dropping. However, these statistics cannot be completely certain. It is likely that, in the aftermath of Britain leaving the EU (if that is what the country decides), the property market will be shaken.

This is both bad and good news. If property prices drop, mortgage lending terms from banks may become stricter, hindering those who are looking to invest in property or take their first steps on the ladder towards buying a home.

Regardless of the deciding vote, Britain’s primary housing complication – a low supply in comparison to demand – will still be an issue. The nation may see a decline in overseas investors due to new policies, which could free up more properties on the market.

However, it has also been suggested that, in the event of an economic crisis following a Brexit, the value of the pound sterling will fall, causing a surge of international investors who can get more for their money. It must be remembered that many international investors that look to buy in the UK, and in particular London, are not from the single market.

Taking into consideration the many predictions from industry experts, it is still incredibly difficult to determine exactly what will happen.

Know Your Lending Options

Whether Britain opts to leave the EU or not, the UK property market is likely to be impacted. Borrowing money from the bank to aid your property investment ventures, or to put a down-payment on your first property, can result in many obstacles.

At Affirmative, you can borrow between £10,000 and £2 million, and you can receive the money within a few days, or even a matter of hours if required. This flexibility allows you to act right away, without any of the waiting period or restrictions of bank lending.

Contact our Manchester office on 08000 44 84 84 to find out more, or email your enquiry to