18 Jul

Brexit “set to affect UK housing market”

Brexit “set to affect UK housing market”

The vote in support of leaving the European Union is set to impact on sales within the UK housing market, claims new data.

Figures from real estate firm Savills suggests many buyers are less certain about committing to buying a property because of feelings of instability and this is likely to lead to lower sales in the short term.

In addition, possible restrictions on lending could also reduce transactions below 1.3 million per year, although levels are not expected to fall below post credit crunch levels.

Lucian Cook, director of residential research as Savills, explained: “Should downside risks persist, there is a possibility that lenders tighten lending criteria. If stricter borrowing rules come into play, first time buyers and second steppers will be the most affected.”

“At this stage, it appears that the downside risks to the housing market are milder than the events that led to the 2008 financial crisis. However, political and economic uncertainty is likely to curtail housing market activity initially as discretionary buyers exercise caution.

“The potential for lenders to tighten lending criteria presents a longer term risk to market activity, especially among first time buyers and second steppers.”ADNFCR-1222-ID-801821967-ADNFCR

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