With June 23rd and the referendum on whether Britain should remain within the EU fast approaching, of course people’s thoughts are turning to what impact leaving would have. And new research has revealed that if the UK did vote to remain, regional cities like Birmingham, Leeds and Manchester would benefit in terms of house price growth because housing demand is on the rise.
Analysis from Hometrack has found that if the UK did vote for Brexit then a reduction of between five and ten per cent in housing transactions would be seen, with London particularly affected by the outcome.
The company’s latest house price index shows that consumer uncertainty regarding the outlook of the economy and their own personal finances typically have a bigger impact on the volume of housing transactions, as opposed to house prices.
“A vote to remain will have the greatest upside for house prices and transactions in regional cities where the recovery has been more short-lived and affordability less stretched than in southern cities. The boost to confidence from a vote to remain, coupled with low mortgage rates would most likely benefit cities such as Manchester, Leeds and Birmingham as housing demand and price growth seems set to sustain itself,” insight director at Hometrack Richard Donnell said.
This comes after the National Association of Estate Agents and the Association of Residential Letting Agents both said that Brexit would see the average house in the UK drop in value to the tune of £2,300 by 2018. Houses in London would see their value drop by £7,500.
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