Brexit: How will it affect the Birmingham property market?
There’s under a year to go before we leave the European Union and there have been concerns for months that Brexit could adversely affect the Birmingham housing property market.
There’s no doubt that the housing market in the south of the country – in London, particularly – has taken a hit over the past few months. The Halifax reported prices falling by an average of 3.2% in real terms in the last quarter alone in the capital (and some homes by a whopping 15% over the past 12 months). That’s the fastest rate in nine years.
But is this down to Brexit? Of course, the answer is not that simple. Rics (the Royal Institute of Chartered Surveyors) says a combination of Brexit and the changes to stamp duty have “killed the fluidity” in the London market. Other factors include a squeeze on household incomes, which leads to a slowdown in consumer spending, a weaker pound and a sharp drop in mortgage lending.
However, by contrast the market further north is not looking so downbeat. In Birmingham, the past two years have seen a buoyant housing market, up year on year for the past two years. And towards the end of 2017, the city was one of the top performers in the country in the housing market.
Birmingham has also been elected the “most investable city in the UK” by PwC, which points to a strong overall market for both homebuyers and investors. Reports that house prices could soar by as much as 30% might not seem so outrageous – we’ve HS2 on the horizon and huge infrastructure plans, and this makes the city a very attractive place in which to live.
Demand for homes remains high, but stock remains the main issue of concern. So while Brexit is certainly something we must keep an eye on, the auspices for Birmingham’s housing property market remain positive.
If you would like to get in touch and book a free valuation report of your home, or discuss putting your property on the market or queries you can get in touch. Contact Us, or call the City Centre Branch 0121 604 4060 or Edgbaston Branch 0121 456 5454