How will Brexit effect affordable housing in the UK? The answer is not a simple one. It is not good, nor bad, but it is uncertain.
While uncertainty may seem scary, it is important to note that the change in circumstances may present various positive outcomes for affordable housing in the UK.
The greater control of borders that the UK was seemingly fighting for, could lead to a reduction in demand for homes. This may lead to more affordable homes for existing residents, with wages rising due to “unshackled enterprise” a policy that has been promised to see the average income increase, combined with fewer people compete for available jobs.
If the economy slows due to Brexit, interest rates are likely to fall further, which, may improve mortgage affordability. Both first time buyers and those already on the property ladder may find that there are fewer rival buyers treating property as an investment which will make it far easier to buy at the lowest price possible.
The introduction of the Help to Buy schemes has experts predicting that the scheme will help to ensure around 135,000 people are able to get support when looking to buy their first property. Combining this with the abolishment of the stamp duty on properties of up to £300,000 for first time buyers, Brexit could be said to have influenced some incredibly positive changes to the housing market in the UK.
Nevertheless, lenders have already become and will continue to get far stricter with their requirements for those looking to buy. This means that buyers will have to spend longer saving for the deposit which stalls the market activity even further.
Unpredictability and a lack of consistency can cause concern and anxiety amongst home owners and those looking to make their first step onto the property ladder. All we can guarantee here at Iceni Homes is that whatever the housing climate may be, whether it stems from Brexit or any other influencer - we will continue our mission to create affordable housing for all.