While some persons are predicting a collapse of the UK
economy, current happenings seem to be proving pessimists who said the UK will
see doom if the country votes to leave the EU wrong.
Experts have said that the prices house will skyrocket within
the next four years due to anticipated growth rate after Brexit.
According to the projection, values of houses will increase
by almost 25% by 2021, due to the confidence consumers have built in the
property market of the UK.
Currently, the price of houses across the UK in 2017 is
projected to be at about £220,000, marking a £9,000 rise as against that of
2016, as reported by the Centre for Economics and Business Research (Cebr).
According to the projection, by the year 2021, the average
£272,000 would be the price for an average home, which will result to a £52,000
rise matched with 2017.
Kay Daniel Neufeld, a Cebr economist and main author of the
report, said: “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.
“Transaction numbers are slowly recovering from the
introduction of a stamp duty surcharge on second homes in April 2016, which has
led to considerable distortions in the market.
“Mortgage approvals, are nearing post-crisis heights,
boosted by low interest rates and favourable borrowing conditions.”
Though it is also predicted that due to Brexit talks billed
to take place, the value of houses will rise at a slower speed resulting into a
yearly rise below five percent.
But then again from 2019, growth is likely to pick up, with
an annual increase of 5.7 per cent pencilled in for that year and increases of
around six per cent in 2020 and 2021.
Furthermore, “The UK property market seems to be
Brexit-proof. It has coped remarkably well with the economic turmoil in the
months following the vote to leave the EU.
“Price growth has eased a little but not to the degree
people were expecting.
“Now Article 50 has been invoked we could see a short period
of low growth, but there’s not reason to face the next few months with fear and
trepidation.
“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.”
Shaun Church, director at mortgage brokers Private Finance, also
said that: “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.
“Rising property prices mean homeowners can re-mortgage to a
more affordable deal as they fall into a lower loan-to-value (LTV) bracket, or
withdraw cash from their homes to be used for things like home improvements.
“Those who decide to sell will also see a bigger return on
their original investment.
“As property is most people’s biggest asset, this can be a
significant part of retirement financial planning. Retirees who see the value
of their property rise could receive a significant bonus to their retirement
funds by selling up or downsizing.
“It’s a good sign that consumer demand for housing will keep
the wheels of the property market turning, despite the uncertainty of Brexit.”
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