According to certain reports the UK house market is being somewhat overshadowed by the arrival of Brexit. The experts are predicting that if the deal does not go well house prices in the UK might fall up to twenty, even twenty-five percent. To the contrary, others are predicting house prices will rise.
It has to be said, the definition of prediction is “what someone THINKS will happen” and it’s important to remember this the basic truth – What will happen is not always what the experts think with happen and history tells us, the experts (unfortunately and sometimes fortunately) are not always right. For example, in 2018 UK house prices were predicted to raise just 1% maximum. In fact statistics are showing around a three percent raise. Many developers were forecasting gloom and doom but to many peoples surprise, house sales have been very buoyant in many areas of Spain. We spoke to Mike Kirby from Valuvillas, a property agency in Javea on the Costa Blanca who said, “this year enquiries have dramatically increased, especially from UK residents so I think people have just got fed up with waiting and decided to bite the bullet and buy in Spain”
The same is happening all across Europe. Experts are predicting and people are reacting and this has resulted in certain property hotspots. Indeed, property sales in some countries (like France for example) are at an all time high. In Spain and Portugal house prices have risen over the past few years and are predicted to keep rising. What does this mean? Bottom line, it means that people are buying which seems to indicate that the general consensus of the public and investors is that prices will rise after Brexit – Despite concerns.
When Will Brexit Come Into Force?
Right now there have been zero changes and the UK remains a fully ‘paid up’ member of the European Union. Until the Brexit negotiations are finalised everything remains a prediction. To date this has not happened and the discussions seem set to continue through 2019 and quite probably beyond. Right now people in the UK are in a strong enough position to buy property abroad – If UK house prices do fall due to Brexit (as some predict), they might not be so well positioned. To which, those who can are making their move now.
What Happens When Brexit Arrives?
When Brexit comes into force the UK will no longer be part of the European Union. This is one definitive fact, and possibly the only of the few things that are definitive right now. After this, buying a house in the EU will the same as it is for all those who do not reside on that country and do not belong to the EU. However, while it will be possible to buy a property, rights to residency are unknown at this time.
Spain and Portugal are very receptive toward foreign buyers (non EU) and already have ‘Golden Visa’ programmes that should make UK buyers feel more optimistic. With Spain and Portugal being the top ‘sellers’ with UK buyers it certainly does seem they are feeling encouraged and confident buying in these countries. UK buyers do represent a notable percentage of foreign buyers within Europe and it seems likely most countries will continue to encourage that. Are more people buying abroad because of Brexit? Yes, the consistent rise in sales since the Brexit vote does seem to indicate more people are buying abroad now in response to the up and coming Brexit directive.