Will house prices fall if we Brexit?
A recent survey of economists have suggested that house prices in the UK will rise quicker than inflation again this year but that rise could be alleviated if the referendum ends in a Brexit.
If the UK remains in, house prices will climb on average 5% this year according to the poll. In 2017 and 2018 the house prices are predicted to rise around 4% per annum.
However, it was found that if the UK votes to exit, the rise will only be 3.8% this year and continue level in 2017, before progressing a modest 2% in 2018.
The higher end of the housing market could be in for a possible shock, but it is not going to change the dilemma that the housing quantity is too low for existing levels of demand.
The same economists, carried out market research about London house prices, suggesting the prices will rise 3% this year and 5% next after a vote to stay in the EU. Again, if the country leaves the percentage rise will only be 2.0 in 2016 and just 1.0% next year.
The National Association of Estate Agents and Association of Residential Lettings Agents have previously advised of likely "damaging consequences" if the UK leaves the EU. A spokesperson for the NAEA has commented it’s not as simple as saying a Brexit would be good or bad. However a report recently released says a British withdrawal from the EU “risks drastically reducing the construction workforce, compromising current plans to build hundreds of thousands of new homes needed to ease the shortage in supply.”