Everyone knows that property prices in Northern Ireland took a massive cut in 2007 and recent articles continue to show it is ‘improving’ but still ‘fragile’. Unfortunately the optimistic view of improvement is starting to disappear as it becomes more likely that Brexit is already starting to affect our fragile housing market and with no certainty about it on the horizon, the BBC reported in December 2018 that Brexit gloom was likely to hit the housing market in 2019. The Bank of England’s governor went so far as to suggest UK house prices could fall by as much as 30% and only surveyors in the North of England and Northern Ireland were less pessimistic and still thought that house prices would rise in 2019. However that was all before the last few weeks have played out, 29 March is well and truly passed and we are still no more clear whether the UK will or won’t leave the EU with a deal. As 12 April approaches uncertainty grows daily as to whether we will crash out then or at some future date.
With houses in the UK taking on average four months to sell and increasing uncertainty about the post Brexit future, fewer people are wanting to move and fewer people are wanting to sell unless they have no other choice. There are also concerns that new housing could also become affected if there are fewer investments in new developments due to the uncertainty.
So what does this picture mean for people who are property owners or would like to get on the property ladder? If you haven’t got a property, chances are you won’t want to buy anything until there is more certainty about Brexit. If you have already made the purchase and are already in negative equity there is some hope of a small rise in prices in 2019 – but in the current situation chances are no-one wants to buy property so you may find yourself unable to sell for a period of time. If you aren’t already in a negative equity position, pessimists would say that there’s every chance Brexit could lead more property owners to find themselves in a negative equity situation.
While we all hope that we will get some reassurance soon about what is going to happen with Brexit, if you are already in a negative equity position and are becoming more worried about your financial position, our team at Negative Equity NI are here to help. We have helped hundreds of clients solve their property debt issues – so talk to us today on 02890 183223 and let us help you too.