Brexit: House Prices in 2020
BY READERS DIGEST
18th Jun 2020 Property
Brexit is finally happening, and one concern is property prices, and we are all wondering what's going to change. No first time home buyers want to see prices skyrocket way out of reach, and equally, no homeowner wants to experience the value of their house or flat plummet so that their equity diminishes. After the four years of waiting, the Brexit countdown is finally over, and the UK has, at last, left the European Union. But, what's the deal with Brexit property prices? What impact could that have on home buyers/sellers?
Edinburgh
Edinburgh saw the highest growth in house price rates at 6.1 percent well above the national average of 3.9 percent. The city is representative of a different trend that has nothing much to do with Brexit. The trend is likely to keep on influencing the property market in 2020 and also beyond. Currently, Edinburgh is experiencing something similar to the housing fizz that was experienced in London 15 years ago. Edinburgh is an enormously popular metropolitan city where house demand so far surpasses the supply. With dwindling housing stock available, the price of houses rises with rates well above the national average.
Nottingham
Last year saw a house price growth rate for Nottingham at 5.2 percent above the national average. The city also has a trend that has nothing to do much with the Brexit and may continue in 2020. The house price-savvy professionals are currently snapping up affordable housing in areas and cities that were once in time, less obvious options. Somewhat similar to this trend happened in Leeds and Sheffield in 2019, where the highest buyer demand was recorded in the UK.
Midlands or the North
Recent estimates indicate that the price of houses in some areas North of England and the Midlands will rise by as high as 15 percent over the next five years. If you are planning to take advantage of the affordability of these areas, you will need to move quickly. The increase might be even higher in individual cities.
London or the South East
If you are in London or the South East, things are perhaps a little less urgent, with prices in Cambridge, London, and Oxford showing a very modest increase of less than 2 percent in 2019. There is no possibility of a sudden price hike even after Brexit. However, prices in these cities are still the highest in the country. If you are thinking of settling in any of them, you should consider low mortgage interest rates, which may well bring home buying in these areas within reach.
Manchester
The city is renowned for being one of the most vibrant in the UK. It offers career opportunities to young professionals while providing affordable housing to families across the country. The career opportunities are a magnet, making Manchester city an exciting place to live. And, the city looks set to benefit from the highest prices in the whole of the UK after Brexit.
Birmingham
Being the UK's second city, Birmingham city is relentless, with a high demand for private rental properties. Since 2016, the city has achieved a fast rise in property prices. With the rapid growth in population and a need for thousands of new homes in this decade, there is a 4.2 percent forecast increase in house prices for 2020. With infrastructures such as 2022 commonwealth-games village underway, Birmingham is a magnet for both national and international investors regardless of the Brexit vote.
Milton Keynes
The city is home for the third-highest number of start-up businesses in the UK, and the city's population predictions are to double by 2050. The town is easily accessible from London and is close to other cities like Cambridge and Oxford. Despite the Brexit vote, the area has seen house prices increase by over 21 percent over the last five years, which is likely to continue, and it is an upcoming area to keep an eye on.
Conclusion
Following the Brexit vote in 2016, the UK's property market has been experiencing a period of uncertainty. Some areas experienced slow progress while others showed rates upward within the four years. But, what should buyers and sellers expect in 2020? The answer to this question depends on the property's location within the UK.
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