Is UK's Housing Market Bubble Ready To Burst?

Published date: 26/02/2019
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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.

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Comments

  • Is UK's Housing Market Bubble Ready To Burst?
    Lewis says:
    27/02/2019

    Cant see who wrote this (guessing Shaun) but either way, a good post. Especially as me and my girlfriend have just put a reservation down on a new build in London with help to buy (as its the only way for us currently) But it has been a thing of should we wait for brexit or not, we really want to get in to our own place when they are ready this may/june, but like you say i dont want it to be 30% less straight away. But then i hear that now is a good time for mortgage interest rates. So we dont want to risk losing the flst to someone else, but what i want to know is will london go down or will it just stay flat for a bit, and also if they do go down, when will they go down and/or will it be instant or will they go down over the next 3 months, 1 year, 3 years? I know nobody knows, but what gives the best indication? Thanks

  • Is UK's Housing Market Bubble Ready To Burst?
    Bashir says:
    26/02/2019

    I will love to invest, due to the reduction of buyers (demand), the price of properties will surely lower and it’s possible to Bergain for a price way below asking price. Buying at a 30% premium will mean an easy 60% when the market stablizes and gets back to normanl.

  • Is UK's Housing Market Bubble Ready To Burst?
    Alex George says:
    26/02/2019

    This is a great article mate well done! I feel like it would be a good idea after brexit/crisis but i have no clue if that is the better option hahaha

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