Is UK's Housing Market Bubble Ready To Burst?
I'm very passionate about the housing market so I thought I would write on this topic to clear up some uncertainty that has been looming amid Brexit negotiations.
The good old Bricks & Mortar investment strategy might not be your best bet right now.
Persimmon, one of the UK's biggest property company shares were down by 6% last week with increasing concerns for Housing minister James Brokenshire scrutiny caused by the Help to Buy scheme.
With a statement released in January from Royal Institution of Chartered Surveyors(RICS) Housing with predictions that the next 3 months in the housing market will be its worst in the past 20 years. With the next quarterly sales review to be flat or even negative this year. The market remains negatively affected by the low affordability which was the trend leading from 2018. A decline has been spotted in the first time buyer enquiries for the fifth month in a row.
A statement from RICS said the Bank of England projects a fall of 30% in the housing market following a disorderly Brexit. It is said that 222,000 housing units were added in 2017/18 however the Government persists with its 300,000 homes a year target by 2022.
Consumer tensions get higher due to the Brexit uncertainties looming at the moment and I personally don't blame them. If BoE predictions for a 30% decline in the housing market are correct lets put it into more perspective so we can all understand. Would you purchase a property for £1,000,000 only to find out in a few months that it's only worth £700,000 which isn't the wisest investment unless you're in it for the long run!
Investors remain cautious as it is crucial that we get a Brexit deal regardless of when we leave or not.
Hope you all enjoyed that article. Let me know if you would invest in property in the UK ahead of Brexit by commenting below....