Could A No Deal Brexit Help Liverpool Buyers?
If you pay even a remote level of attention to the news these days, you will know that the phrase No Deal Brexit is being used increasingly. We are still no closer to knowing what Brexit will mean to people when it occurs in 2019 but it looks as though we may be in for a challenging period.
However, for people with an interest in the property market, it would be fair to say that Brexit has already impacted on the market. The level of uncertainty caused by Brexit has prevented people from property moves because when there is uncertainty in the economy, people hold off from making major decisions. This was the case around the Scottish Independence vote of 2014 and for the General Election of 2015, and it has also been the case since Brexit.
Uncertainty causes major problems in the property market
In the first two examples, there was a clear end date and no matter what people thought of the outcome, there was a conclusion and life moved on with clarity. This allowed people to make a property decision with a greater level of confidence. Since the European Union Referendum resulted in a Brexit result, no one has known what to expect, and this has led to the market slowing down.
However, now that a No Deal Brexit is looming closer, there are some bodies willing to state what impact this will have on the market. The Bank of England stated that a No Deal Brexit may lead to a notable fall in house prices over the next three years. This has left some homeowners concerned about negative equity, but it should be remembered that:
- The Bank of England isn’t always right
- Sometimes the Bank of England makes predictions to influence the market as opposed to predicting the market
There have also been some property market specialists who have made more positive predictions for a No Deal Brexit. In Liverpool, the city has been recognised as one of the leading cities in the United Kingdom for landlords with respect to rental yields and returns. This is a city on the up, there is a large student body and the affordable nature of property, in relation to many other major cities, means that landlords and property investors have been flocking to the city.
There is a belief that property investors will continue to be drawn to cities like Liverpool, which provides vendors with a degree of confidence that there will be a demand for their home.
Some people are hoping for a fall in property prices
There is also the fact that many people have been calling out for a fall in property prices as this will make it easier for first-time buyers to afford a property. Now, if you are looking to sell your home, the thought of selling at a lower price isn’t going to be appealing but don’t forget how the market responds and reacts to changes. If properties are more affordable, there will be a greater level of demand for homes, and then demand will significantly outstrip supply, which in turn will lead to a rise in prices.
There may be some questionable moments in the market but there are enough property specialists predicting that the market will correct itself before too long to ensure that there is no need for Liverpool homeowners to overly panic just yet.
Uncertainty is never good for the property market so if a No Deal Brexit occurs, at least people will know what they are dealing with. If you are looking to sell your home in Liverpool, turn to Peter Anthony and we will take care of you.