On 23rd June 2016 the people of Lincolnshire and the whole of the United Kingdom voted in the historic landmark referendum to vote to stay within the or to leave the European Union.
Polling Stations closed at 10.00 pm on Thursday, 23rd June 2016 with Emma Bowey, one of Mundys’ negotiators, casting possibly one of the last votes within Lincolnshire at 9.58 pm.
The Country either stayed up to watch the results unfold or woke to see a majority wanting to leave the European Union. In Lincolnshire, on average, 74% of the electorate voted, with over 60% of people voting to leave the EU and 34% of people voting to remain. Some of the highest levels of leave votes within the whole country were in Boston and the East Lindsey District in Lincolnshire with a massive 74.5% leave votes.
So what does Brexit mean for Lincoln’s Housing Market?
Now we have voted to leave the EU, are house prices really going to fall? Here’s what the experts say….
The International Monetary Fund (IMF) has warned that Brexit could cause a sharp drop in house prices. This was on the expectation that the cost of mortgages would rise.
The Treasury has said house prices could be hit by between 10% and 18% over the next two years, compared to where they otherwise would have been. This would be good news for first-time buyers, but not so great for existing homeowners.
The National Associate of Estate Agents (NAEA) believes house prices in London could see the biggest change, losing up to £7,500 on average over the next three years, compared to where they otherwise would have been. Elsewhere, it said values could fall by £2,300. But since it expects prices to continue rising anyway, this means a slower rate of increase, rather than a fall in real values (see table below).
And again, if the Bank of England were forced to cut rates, all these projections would be wrong.
How might the EU existing affect housing prices:
|Year||By leaving EU||If UK had remained in EU|
So what about Lincoln?
Ever since the last recession the housing market has steadily recovered with house prices increasing year on year since 2009.
We are confident here at Mundys that the Lincolnshire market is strong and resilient to massive changes. Lincolnshire has many things going for it, with a growing University, a vibrant Modern City steeped in history and the recent renovations of the Castle and the Magna Carta provide an influx of tourism.
With continued investment in our infrastructure, with projects like the South East Bypass and the new Transport Hub, things are looking up for Lincoln.
The Bank of England released a statement immediately on the 24th releasing £252 billion to the mortgage markets. The Bank of England have also confirmed they will look at interest rates to stabilise any problems should they occur.
All of the above together with the fact that house prices are low compared to other areas of the country, would lead us to predict that whilst there will obviously be some uncertainty over the next few months, we am convinced that there will continue to be high demand for property in and around Lincoln and the market will recover.
We believe that property within Lincoln remains a fantastic investment and, with extremely low interest rates, we are convinced that now is a good time to sell or buy.
If you know it’s the house for you, go for it. Do not put your life on hold for the next 2 to 3 years. Nobody knows what is going to happen in the future anyway. Property is still the best form of investment.
If you have any questions about property after Brexit then get in touch
Call Chris and our team on 01522 510044 or email Chris.Laughton@mundys.net for honest, expert and friendly advice.