The Brexit vote is fast approaching, polling cards have been dropping through doors across the UK and still many people are still confused about which way they should vote.
Politicians across every party are weighing in with their own views, often conflicting within the same party, tapping into the things that voters really feel passionate about in order to garner support. With property prices in the UK rising in March at their highest monthly rate since 2004 (thanks to the pre-stamp duty increase rush), increasing by 2.5% and taking the average UK property to a whopping £291,820, it is no surprise that house prices are one of the key tools that politicians are using in the EU voting campaign.
However, a statement recently released by international investment analysts Moody’s, suggests that your purchasing position could influence the way you vote, with the research suggesting that a vote to leave the EU would bring a huge boost to first-time buyers.
The report suggested that a fall in house prices triggered by an exit from the European Union would allow first time buyers to get a grip on the housing market, making previously unaffordable properties suddenly within reach. They believe that buyers would benefit from lower competition for properties, as a curb on immigration would relieve the pressure on the rental market. The National Association for Estate Agents have estimated that property prices across the UK are likely to fall by an average of £2,300, with properties in London property prices dropping by as much as £7,500.
The research reviewed the London property market in detail, and expects landlords in the capital to be under pressure, with a drop in rent demand seeing many struggling to pay hefty mortgages. Moody’s said London’s property market could be more affected by Brexit as the capital would become less attractive to EU citizens, so landlords could struggle to pay mortgages because of falling rental demand.
As well as London landlords feeling the pinch, Moody’s also warned that the capitals significant amount of self-employed people may be at risk of fluctuating pay, which may have a knock-on effect to mortgage and rent payments. Whilst this is the same risk everywhere, the capital has the largesse concentration of self-employed people, with 17.3% living within the city boundaries.
Not everyone agrees with the Moody’s report though. The International Monetary Fund has reportedly said that ‘they have failed to find anything positive to say about a Brexit Vote’ although the thousands of people desperate to get their foot in the door of the increasingly desperate market may disagree.
Christine Lagarde, the managing director of the IMF believes that a vote to leave the EU will cause a house price and stock market crash – terrible news for business and economy, but possibly good news for buyers?
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