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Property Prices After Brexit - the Complete Guide

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    How Did Brexit Affect the Property Market?

    Brexit. Just the word can send a shiver down the spine of any UK investor.

    It’s been seven long years since the UK took the divisive plunge to leave the EU on  23 June , and to call this period complicated would be an understatement.

    The world has changed a lot since the Brexit vote, with 2020/2021 proving an explosive year after Covid-19, various Bank of England Base Rate drops, and an unheard-of  tax-saving holiday.

    At the time of writing this, we are now in 2023, and the UK has spent almost two years completely out of the EU.

    With this in mind, we thought it was high time to look back over the years and see exactly what has happened to house prices after Brexit.

    In this in-depth guide to Brexit, we will look at Brexit house prices from 2016 to 2023 to see just how the infamous vote has impacted the UK housing market.

    We will also try and answer all the commonly asked questions we get asked about Brexit, including “will Brexit affect house prices?”, “will house prices fall after Brexit?” and “will house prices rise after Brexit?”

    If you want the ultimate property prices Brexit guide, look no further than here.

    Keep reading to learn more.

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      Brexit House Prices 2021 to 2023 

      Brexit and the housing market have had an interesting relationship over the last few years.

      It’s now been almost two years since the UK took the bold step to leave the EU at the start of 2021.

      Since then, a great deal has happened to the Brexit property market, with huge property price fluctuations seen across the UK.

      While a strong factor for these changes has undoubtedly been the economic impact of Covid-19, it’s interesting to see just how house prices have performed following the UK’s exit from the EU.

      According to the latest Land Registry data, the average UK property is valued at £287,506.

      This is an impressive 5.52% higher than 12 months prior and is over £37,000 more expensive than in January 2021.

      Post-Brexit house prices have had a huge boom over the last year or so.

      There were some large variations in prices, but growth was incredibly high from January 2021 to February 2023 (the latest available data at the time of writing).

      2021 was a record-breaking year for property, with Nationwide reporting that UK house prices had increased by the highest level in 15 years, finishing the year at the highest average house price on record.

      While these prices were likely not impacted by Brexit and instead were entirely influenced by a newfound appetite to move homes post-Covid, it does show that Brexit has had little impact on property market performance.

      The housing market Brexit performed incredibly well in 2021, something which continue relatively consistently through to 2023, perhaps easing the anxiety of those asking, “will house prices crash after Brexit?” or “will house prices drop after Brexit?”

      In fact, if you wanted to know, “will house prices go up after Brexit?” the data suggests that there is set to be an even higher level of growth over the coming years.

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      House Price Predictions Post Brexit  

      Will House Prices Rise After Brexit? House Price Predictions Post Brexit  

      Post Brexit house prices have experienced an astronomical rise over the past year.

      One of the main contributing factors to this rise has been the tax savings on offer due to the stamp duty tax holiday (which ended in October 2021), alongside a new wave of people wanting to move homes after lockdown.

      Growth was so dramatic in 2021, in fact, that in a report by the BBC, the managing director of estate agents Fine & Country said:

      “This market is moving so fast that if you blink, it increases in value, […] and it could be about to get even busier.”

      We’re now in 2023, however, and most experts expect that the growth seen in the 2021 market is unlikely to reoccur in 2023 – although some notable growth is still expected.

      Predictions from industry experts Savills have found that property prices are set to increase by up to 5.6% in UK regions by 2027.

      This rate fluctuates heavily throughout the country, with the North West set to see prices rise by 11.7%, while London is expected to see negative growth of -1.2%.

      While many experts predict a significant drop in house price values, this doesn’t mean that investors should be hitting their panic buttons anytime soon.

      In fact, this may provide investors with the perfect opportunity to buy while prices are still low.

      And, if prices do fall, it’s not necessarily a permanent change.

      For example, in 2020, house prices in the UK saw a temporary dip at the beginning of the pandemic, with average prices slipping by 0.6% between March and April. By the end of the year, however, this average shot to record highs and saw investors making strong capital growth returns.

      With this in mind, it’s no wonder that many have historically regarded property as one of the most resilient investments. For this reason, property investment in 2023 is worth considering, especially if you’re looking towards long-term capital growth.

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        Brexit and House Prices in 2016 to 2023: An Economic Impact 

        To get a complete picture of house prices and Brexit, it’s essential to look at the months and years following the original 2016 vote.

        Every month after the initial Brexit vote, a significant drop in Brexit house prices was anticipated.

        Many Remainers were fearful of the significant economic impact that could result from the UK’s withdrawal. Some were asking, “will house prices drop after Brexit?” and “will Brexit affect house prices?”

        So, what actually happened in the months following the Brexit vote?

        While the UK economy did slow down throughout the second half of 2016, the country’s property market didn’t immediately suffer from the so-called ‘Brexit Armageddon’ initially feared.

        The GBP had one of the most significant drops that the UK economy has experienced after the Brexit vote, with the pound sinking to a 31-year low against the dollar on Wednesday, 6 July 2016.

        By 24 August, however, the pound rose to £1.32 against the US dollar – the highest rate it had been at in three weeks.

        While the economy certainly had its ups and downs during the next few years, this wasn’t seen in house prices after Brexit, with a continued rise in value seen across the UK market.

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        Brexit House Prices 2016-2023

        After months of ‘will house prices fall after Brexit?’ and ‘what will happen to property prices after Brexit?’, it became obvious that fears for the property market were unfounded.

        While there was an initial lull in price growth during the months following the Brexit vote, prices started to recover quickly.

        Findings from a Bank of England regional agents survey revealed that while there was a dip in UK property market activity following 23 June, the market had proved to be far more resilient than first expected.

        According to official Land Registry data, prices between June 2016 and December 2016 increased by around £3,000.

        While this isn’t a significant rise, prices were stable, which is something many experts failed to anticipate.

        Soon after, house prices after Brexit started to increase by a much more considerable margin.

        There was strong growth during the summer months in 2017, with prices rising from March to August by almost 5% before slowing down and levelling off towards the end of the year.

        Overall, prices in June 2017 were 4.2% higher than in June 2016 – exactly 12 months on from the Brexit vote.

        So, just how drastically have property prices after Brexit increased from 2016 to 2019?

        The overall trend going into 2018 and 2019 was a rise in property prices, although there were some drops in 2019 – with many experts believing this drop was a consequence of the political uncertainty at the time.

        Despite this, the general trend was that the effect of Brexit on house prices was unfelt, with a consistent rise in property prices.

        According to the Land Registry House Price Index data, UK house prices increased by 8.88% from the European Union Referendum to the end of 2019.

        This highlights how well property performs during times of uncertainty.

        Despite understandable drops in house prices caused by the uncertain political climate, property prices quickly recovered and exploded in 2020 and 2021.

        Overall, looking at price growth from 2016 to 2020 for each UK country, we can see a consistent and strong trend in price growth.

        Comparing year-on-year from June 2016 to June 2020, we can see a stable and continuous level of growth across each year.

        England saw house prices rise by 9.82%, while Wales such a huge growth of 14.48%.

        It was a similar trend for Scotland and Northern Ireland, which saw prices rise by 10.44% and 14.27% , respectively.

        Specific regions in the UK also saw higher house prices after the Brexit vote, with the highest rises coming from the West Midlands, East Midlands, and the North West.

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          Rent Prices Also Grew After Brexit  

          These promising house prices after Brexit statistics were definitely good news to those investing in UK property.

          While many investors were asking, “what will happen to house prices after Brexit?”, there was also the question of rental prices to consider and how fluctuations in the rental market could impact buy-to-let investments.

          With buy-to-let, rental yields are one of the key factors that investors look for in their property ventures, and many were left wondering whether their rental income would be affected by the 2016 Brexit vote.

          Thankfully, this wasn’t the case, with average rental yields in the UK  heavily increasing over the last seven years.

          The combination of the property market and Brexit has seen rent prices increase strongly over the past few years, particularly in the Northern UK regions.

          As of April 2023, rental income has increased across the UK by around  9.9% since 2022, with the North West increasing by 9.1%, according to the HomeLet Rental Index.

          While the answers to “will the housing market crash after Brexit?” and “will Brexit affect house prices?” cannot be answered with certainty, so far the statistics suggest that the market has grown fantastically over the years.

          Overall, these growth levels suggest that the uncertainty brought on by Brexit may not damage the property market as much as many predicted.

          Judging by how well the UK property market held up following the EU Referendum vote, it’s hopeful that property prices Brexit will remain robust over the coming years.

          Brexit Property Prices Growth by UK City

          To cap off our look into property prices Brexit, let’s examine how house prices after Brexit have changed by UK city.

          The Merseyside city of Liverpool nestled in the North West of England has long been seen as the ideal property investment hotspot.

          Thanks to massive regeneration projects over the years, Liverpool has excelled in its property market, with a continued rate of price growth, rental growth, and rental demand.  

          Despite Brexit and Covid-19, this trend of price growth continued every year in Liverpool.  

          There’s been a consistent and substantial rise in property prices over the last seven years in Liverpool, with prices reaching huge levels in 2021.  

          Between June 2016 and June 2020, prices in the city increased by 14.77%.  

          This growth rate got even higher throughout the end of 2020 and into 2021.  

          As of June 2021, property prices in Liverpool were 17.76% higher than a year prior.

          Fast forward to February 2023, and prices have risen by 9.39% since the same time last year.

          Since June 2016, prices have risen by a staggering 51.43% overall. 

          These headline growth rates are what makes Liverpool one of the best investment hubs in the world.  

          If you want to learn more about Liverpool property investment, be sure to check out our in-depth guide.  

          Alongside Liverpool, Manchester is regularly seen as a top investment destination.  

          The city has one of the youngest populations in the UK, with a huge student population surpassing 100,000.  

          Manchester and the wider Greater Manchester region have experienced massive growth over the years, with property prices in 2023 almost 289% higher than in 2003. 

          Like Liverpool, Brexit property prices in Manchester have also seen a consistently strong growth rate.   

          Looking at the data, Manchester has seen quite sizeable growth from 2016 to 2018, before dipping slightly in 2019 and 2020.  

          For June 2019, political uncertainty dominated the UK landscape, while June 2020 showed the city recovering from the impact of Covid-19.  

          Despite these pressures, property prices quickly bounced back, with prices in June 2021 17.11% higher than in June 2020.   

          Overall, between 2016 and 2023, property prices have increased by a massive 52.77%.   

          For a deep insight into the Manchester market and to learn why Manchester is widely considered the ultimate property investment destination, be sure to check out our in-depth Manchester property investment guide for 2023. 

           

           

          The UK capital of London has long been the main target of investment from overseas.  

          With more foreign direct investment projects located in the capital than anywhere else in the UK, according to Statista, you would be forgiven to think Brexit would impact the city more than most.  

          Judging by how house prices have performed throughout the past seven years, these house prices London Brexit concerns have been warranted.  

          House prices in London have reached astronomical highs in the past decade, with prices currently an eye-watering £1,002,447 in January 2022, according to Zoopla. 

          However, these Brexit house prices London have proved to be unsustainable, which has caused frequent drops over the past few years.  

          Traditionally, London has felt the impact of economic uncertainty more than any other city, making it unsurprising that the London market has suffered during the last five years.  

          Brexit London house prices stagnated between June 2016 and June 2020, only increasing by around £8,000, while places like Liverpool saw increases of nearly £20k.  

          However, after the explosive house price growth year of 2023, prices in London are now 5.83% higher than in June 2016.  

          Interestingly, despite the expense of property prices in London, the time to sell in the capital has been rapid throughout the year, although it falls short of the national average. 

          Across 2020 and 2021, the time to sell property in London has remained remarkably low given the economic pressures of Covid-19 and the huge expenses of the capital.  

          As of March 2023, it took around 70 days for property to sell in the capital, according to the Rightmove House Price Index.   

          This is much higher than the national average (57 days) and higher than in 2020,  but it does show a slight improvement over the start of 2023. 

          This has likely been down to the continued levels of foreign investment in the capital, sparked by the value of the pound dropping and tax savings available from the stamp duty tax holiday.  

          If you want to read more about Brexit London property, and find out why London is no longer the best place to invest for UK-based investors, be sure to check out our London property investment guide.  

          Commonly referred to as the UK’s second city, Birmingham boasts the largest regional economy outside of London.   

          Like most UK locations, property prices in Birmingham have seen a solid and consistent rise in house prices after Brexit.  

          Between June 2016 to June 2019, property prices experienced a consistent rise in Birmingham, increasing from £161,121 to £187,973, a 12.48% growth.  

          Price growth dropped from 2019 to 2020 due to Covid-19, with a slight price decrease of 0.91%.  

          Price growth quickly recovered after this date, with average Birmingham prices reaching £207,508 in February 2021, and then £215,331 in 2022. 

          Now, as of February 2023, this value is £236,331, an increase of 9.8% since 2022, an increase of 46.98% over June 2016.

          In general, UK house prices Brexit has seen a consistently strong level in price growth.  

          If you wanted to know “will house prices rise after Brexit?” or wanted to understand house prices UK after Brexit, it’s clear that the housing market has remained robust. 

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          The Boris Bounce of 2019/20 

          You may have noticed that prices in 2019 generally saw less growth than in other years.

          This was because 2019 was a significant year in the EU referendum timeline due to huge uncertainty surrounding Brexit and whether the UK would get a deal or not.

          2019 was a tense time for the UK government, with many fearful of Boris Johnson’s intentions for Brexit.

          One of the biggest concerns was with Johnson’s likelihood of promoting a no-deal Brexit – causing many to worry about no-deal Brexit house prices.

          However, after the Conservative Government’s sizeable victory in the December 2019 general election, a wave of certainty spread across the UK, with the economy seeing a strong uprise.

          This was referred to by many experts as the ‘Boris Bounce’.

          Since Boris Johnson won the 2019 general election with a large Tory majority, several improvements have been noted.

          As soon as the General Election result was announced in December 2019, the GBP reached a rate of 1.35 USD – the highest level it’s been at since May 2018.

          This massively increased confidence in the UK economy, especially since the GBP reached lows of 1.22 USD after Boris Johnson first became Prime Minister back in July 2019.

          At the same time, following the 2019 general election, investment sectors witnessed a significant growth in share prices.

          The share prices of FTSE 100 and FTSE 250 companies grew by 1.1% and 3.4%, while Barclays, RBS, and Lloyds all saw share prices increase by 6%, 8%, and 5%.

          Property developers and contractors in the UK also saw their share prices grow, such as Barrett and Persimmon, who reported respective increases of 14% and 12%.

          The International Monetary Fund, an international financial organisation, has even predicted that thanks to the ‘Boris bounce’, the UK will see stronger growth than Germany, Japan, and France in 2020/21.

          So, what do the house price growth figures say?

          According to Halifax data, in December 2019, house prices reportedly leapt by 1.8% compared to the previous month, boosting the annual increase to 4%.

          Additional research also shows that as of January 2020, average asking prices for properties in the UK had risen by 2.3% since 12 December.

          According to Rightmove, this increase has added around £6,785 to the value of the average UK property.

          Interestingly, this growth was the largest monthly rise for that time of the year recorded by Rightmove since 2002.

          If you’re an investor who’s wondering, ‘will house prices fall after Brexit?’ figures like these should be enough to put your worries at ease.

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            How Have Housing Transactions Been Affected by Brexit? 

            One of the most interesting metrics to look towards when evaluating Brexit house prices has been the level of housing transactions post-2016.

            Property prices often coincide with demand, with prices likely to surge the more demand increases.

            Many people were concerned that this level of demand and the ability to buy property would disappear due to Brexit, with fewer people having the money to spend on expensive purchases.

            Thankfully, data released by HM Revenue and Customs suggests that Brexit has had almost no measurable impact on the volume of housing transactions in the UK.

            There have been minimal changes post-2016, with a relatively consistent level of housing transactions after the referendum vote compared to before.

            In fact, the only sizeable dip was seen in April 2020, where housing transactions fell from 87,860 to 37,360 since April 2019.

            This level of drop was a direct consequence of lockdown measures put in place in March 2020.

            Transactions quickly recovered towards the latter end of the year before reaching an incredible peak of 111,260 in April 2021.

            This was a 197.8% year-on-year increase in the non-seasonally adjusted data.

            Overall, aside from 2020, housing transactions have remained remarkably consistent after the June 2016 election, with no noticeable impact from Brexit.

            In fact, now that the UK has officially left the EU in 2021, housing transactions have skyrocketed.

            However, this is likely attributed to the desire for new property caused by the three UK lockdowns and the tax savings on offer from the stamp duty tax holiday.

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              Is the UK a Seller’s Market in 2023?

              Another vital metric people often use to measure the impact of house prices and Brexit is the time it takes for a property owner to sell their home.

              If a property sells fast, it shows there is a high demand for property in the UK, highlighting how strong the UK property market is.

              According to the latest Rightmove House Price Index from January 2023, the number of people sending a request to an estate agent to value their home, usually the first indication of a future seller, was the third largest on record, which is an early sign of market confidence.

              The report from Rightmove notes that the number of properties available cannot meet demand, with available stock at the lowest proportion ever recorded.

              Perhaps the most interesting part of all this is that Rightmove believes this trend will continue for the foreseeable future, with market activity remaining robust well into 2023.

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              The Brexit Timeline- What’s Happened So Far? 

              There’s no denying that Brexit, and the negotiations involved, have been a long and tiresome process.

              If you want to refresh your memory on what exactly happened from 2016 to 2021, here’s a complete Brexit timeline.

              22 February 2016  

              The Date for the EU Referendum Vote Announced  

              In February 2016, David Cameron announced that the UK would vote in an EU Referendum on 23 June, officially launching the Brexit campaign.

              23 June 2016  

              UK Votes to Leave the EU  

              In June 2016, the UK voted to leave the EU, with the leave campaign having won by 51.9% to 48.1%. David Cameron announced his resignation as prime minister the following day.

              13 July 2016  

              Theresa May Announced as Prime Minister  

              Less than a month after the Brexit vote, Theresa May was appointed as the new Prime Minister, having won the Conservative Party leadership contest by default.

              29 March 2017  

              May Triggered Article 50 of the Lisbon Treaty  

              On 29 March 2017, Theresa May triggered Article 50 of the Lisbon Treaty, prompting Brexit with a notice period of two years.

              18 April 2017  

              Theresa May Announced Plans to Hold a Snap General Election  

              Theresa May called a snap general election in a bid to increase her authority in both the House of Commons and the public eye.

              8 June 2017  

              General Election Saw May Lose Majority and Make a Deal With the DUP  

              The final result of the 2017 general election saw no seats win a majority. As a result, Theresa May was forced to make a deal with the DUP in order to stay in power.

              15 January 2019  

              May’s Withdrawal Deal Draft Rejected  

              In January 2019, the UK Parliament held a vote to decide whether or not they accepted the Withdrawal Deal offered by Theresa May. This deal was rejected with just 202 votes for and 432 votes against.

              13 March 2019  

              MPs Say No to a No-Deal Brexit  

              Parliament voted in favour of a motion which aimed to rule out the UK leaving the EU without a deal, although the result of this vote was not legally binding.

              10 April 2019  

              Deadline Pushed Back to 31 October  

              Despite the aim to leave the EU on 29 March 2019, a new Brexit deadline of 31 October was announced due to the fact that Theresa May’s withdrawal agreement was rejected three times in total.

              24 May 2019  

              Theresa May Resigned as PM  

              On the 24 May 2019, Theresa May announced that she was standing down as Prime Minister. On 24 July, May headed to Buckingham Palace to tender her resignation to the Queen.

              24 July 2019  

              Boris Johnson, New PM 

              Boris Johnson is appointed as the new leader of the Conservative party, now heading up the Brexit campaign.

              29 October 2019  

              UK Parliament Approved General Election  

              In a similar turn of events to the 2017 election, Boris Johnson called for another snap general election. Parliament approved this, and a new election campaign was launched ahead of the December election.

              12 December 2019  

              Boris Wins Majority  

              Boris Johnson won the 2019 general election with a comfortable majority of 365 seats. This reignited the nation’s confidence in both the UK government and Brexit as a whole, causing experts to predict that after Brexit, property prices would remain stable.

              9 January 2020  

              MPs Back Withdrawal Agreement Bill  

              The Commons voted 330 to 231 in favour of Boris Johnson’s Withdrawal Agreement Bill – the bill that will implement the UK’s Brexit deal.

              31 January 2020  

              Departure Day  

              The UK departed from the EU at 11 pm on 31 January 2020. The country has now reached the Brexit transition period before all agreements between the EU and the UK are made by the end of the year.

              2 March 2020  

              Trade Talks Begin  

              Trade talks officially begin in Brussels. Talks are set to continue every two weeks until a Brexit trade deal can be reached.

              19 March 2020  

              Pressure to Delay Brexit  

              Chief negotiator, Michel Barnier, reveals he’s caught Coronavirus. which prompts pressure to delay Brexit talks due to the ongoing Covid-19 pandemic.

              17 May 2020  

              EU Urged to Show Flexibility

              Michael Gove urges the EU to show ‘flexibility’ as signs continue to point towards a no-deal Brexit.

              13 June 2020  

              Support for Transition Period Extension  

              A survey reveals that over half of Britons support a Brexit transition period extension, while three-quarters of British people believe that the UK should work closely with the EU to combat coronavirus.

              21 August 2020  

              UK Will Not Extend Trade Talks  

              Negotiator Michael Barnier states that he believes a UK-EU Brexit trade deal is ‘unlikely’. The UK says it will not extend trade talks even if an agreement cannot be reached by the 31st December deadline.

              23 October 2020  

              Trade Talks Continue in London  

              Trade talks continue as negotiators meet in London. Liz Truss, International Trade Secretary, insists that a deal can still be done due to a new round of intensified daily meetings.

              24 December 2020  

              UK and EU Agree on a Post-Brexit Trade Deal  

              After months of negotiations, a deal is finally agreed upon, prior to the end of the transition period on 31 December.

              31 December 2020  

              UK Leaves EU After Transition Period  

              After five long years, the UK officially left the EU single market and customs union at 11 pm.

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                Brexit House Price Predictions – What Do the Experts Predict for Brexit House Prices?

                If you’re still unsure about the possible outlook for the housing market post-Brexit, we’ve compiled a selection of thoughts and predictions from some of the top industry experts. 

                Below you will find some commonly asked questions by our readers, with answers and predictions taken from industry experts like JLL, Savills, official government estimations, and more. 

                In 2020, property expertsJLL predicted that the London housing marketafter Brexit is set to see some progress over the coming years.   

                Some of this progress has been witnessed since 2016, but a recent study by JLL suggests price drops in most markets this year as purchasers try to balance increases in living costs and higher interest rates.

                However, the study also suggests high demand from those investing overseas.

                So, will Brexit affect house prices?   

                Here’s what the experts expect for house price predictions post Brexit.   

                Property experts JLL predicted a national growth in 2022 of 4.5% in property prices due to an increase in market and consumer confidence.  

                As of January 2023, current property prices in the UK are 5.52% higher than a year prior.   

                This is a fantastic sign that house prices will remain strong despite any economic uncertainty that may remain.    

                Much like in previous years, the North West region is expected to dominate the housing market post Brexit, while the South is likely to see less growth.  

                According to Savills predictions, the North West is set to a growth of 11.7% by 2027, with the UK increasing by a slightly lower average of 6.2% over the same period.  

                Predictions from the Royal Institution of Chartered Surveyors suggested that rents in the UK would increase by 2.5% due to an ongoing gap between supply and demand in the UK property market.  

                Considerable growth has been witnessed in the time since, with average rental prices reaching £1,199 in 2023 – one of the highest on record.

                This suggests that now is a great time to go ahead with your buy to let investment, allowing you to purchase your investment property before it rises even more in value while also benefitting from attractive returns.  

                For April 2023, HomeLet has recorded a UK rent growth of 9.9% over April 2022. Again, this being one of the highest levels of growth on record, this could suggest even further growth in the future. 

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                  Brexit and House Prices: What About Mortgage Rates? 

                  Both homebuyers and investors are curious about not only house prices after Brexit, but also mortgage rates, and how mortgages will be affected in 2023.

                  Over 2020 and 2021, mortgages changed in line with the coronavirus pandemic.

                  The majority of lenders began to close their 95% mortgages, which were common with first-time buyers.

                  While 2020 and 2021 have brought issues for first-time buyers who favour affordability when agreeing on a mortgage deposit deal, things have looked up for investors and those buying a second home.

                  This group of buyers were able to benefit from some large savings through the stamp duty holiday.

                  The stamp duty holiday was announced in July 2020, and allowed those buying a second property to save money on stamp duty tax.

                  The announcement of this tax break helped to boost UK housing market activity, which has also caused mortgage rates to rise due to demand.

                  If you want to learn more, be sure to check out our stamp duty guide.

                  The tail-end of 2022 saw mortgage rates skyrocket in an effort to fight inflation. In October, mortgages saw a 14-year high, and even when they began to calm down in November, six-year mortgage rates were still at a high amount of 5.95%.

                  This wasn’t the greatest news for investors, with buy-to-let mortgages traditionally seeing higher interest rates than standard residential mortgages due to the increased risk, as well as the fact that you pay off the accrued interest throughout the mortgage rather than the mortgage itself.

                  Therefore, if the levels of interest on mortgages are rising, then buy-to-let mortgages could potentially become less affordable for many in 2023, with some seeing fewer returns if they pay more to their mortgage broker.

                  The good news is that, in 2023, mortgage rates will likely calm down.  They are already lowering from the highs of October now that there is a somewhat more stable situation in the UK politically and economically.

                  For more on the state of the market in 2023, read our 2023 property market predictions guide.

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                  The Effect of Covid-19 on Brexit and House Prices 

                  The threat of Covid-19’s impact on the UK economy and property market has somewhat overtaken Brexit uncertainty.

                  But just how much impact will the combination of the Coronavirus pandemic and Brexit have on the UK property market and house prices after Brexit?

                  While Covid-19 has undoubtedly had a big impact on the UK economy, with many people out of work and many businesses failing, the outlook for the UK property market remains positive.

                  With the average UK property price now at a record high, the UK property market has experienced a similar resurgence during the Coronavirus pandemic as it did back in October 2016 following the initial Brexit vote.

                  Hopefully, the UK property market will follow a similar pattern over the coming years as it did following Brexit uncertainty.

                  With predictions for huge growth in property prices in the coming years, property market predictions for 2023 and beyond look promising in the face of both the Covid-19 aftermath and the outcome of Brexit house prices.

                  Savills, for example, released updated property price predictions which estimate that UK property prices will grow by 6.2% by 2026.

                  Within the same period, an even higher growth of 11.7% is expected for the North West and the Yorkshire and the Humber regions.

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                  Should I Invest in UK Property? The Key Points on Brexit and House Prices

                  There’s definitely a lot to think about regarding the issue of property prices after Brexit and whether or not we can expect a strong housing market post-Brexit’s finalisation. 

                  If you’re considering investing in property, here are some points to take away:

                  Following a slightly rocky period after the initial EU Referendum vote in 2016, the UK property market is now in a much more stable state, even with Covid-19 and its effect on the economy.   

                  Ultimately, the question of ‘will house prices go down after Brexit?’ is dependent on factors such as the Brexit deal and the UK area you’re looking to buy property in. 

                  The majority of experts, however, have confidence in the market moving forward.   

                  Recent house price predictions post Brexit has revealed an increase in property sale prices. Experts have predicted that property prices after Brexit will continue to rise throughout the coming years.  

                  When it comes to property prices, the Brexit housing market may see some regional differences in house price growth.   

                  According to past property market patterns and expert predictions, cities in the North West region are expected to have the strongest housing market after Brexit.   

                  In a recent report by Hometrack, Liverpool is revealed to have rapidly growing house prices.   

                  Despite this, however, the city is also hailed as the second most affordable city in the UK, which can only mean that wages are increasing.   

                  Both before and after Brexit, property prices in Liverpool presentLiverpool property investmentas the most attractive UK investment opportunity.  

                  If there’s one thing you can take from the UK housing market throughout 2020, it’s that it is incredibly resilient.   

                  Even in the face of economic turmoil due to the Covid-19 pandemic, both UK property prices and property market activity have remained strong.   

                  This is a good sign that in the face of any issues that may arise, house prices after Brexit should continue moving in the right direction.

                  Not only is the average house price after Brexit set to see an increase, but predictions on the housing market after Brexit also reveal rental price growth.   

                  This is a great sign for UK buy to let investors, boosting rental yields and capital growth potential.   

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                  We hope you enjoyed our guide to Brexit property prices and the property market Brexit in 2023.

                  The world of property is constantly changing from outside factors like Brexit and Covid-19, but there has simply never been a better time to invest than now.

                  With record-breaking property price growth, huge tax savings, and massive return potential, property is currently the ultimate asset for investment.

                  If you want to take advantage of this fantastic period, then be sure to invest with RWinvest.

                  Voted the North West’s best property business in 2020 and nominated for Business of the Year in the Echo Regional Business Awards 2021, there is simply no better investment company than us.

                  With over 18 years of experience and 1,000 five-star reviews, we can deliver the best property opportunities on the market.

                  If you want to discover more about RWinvest or just want a quick chat to assess your options, contact us today.

                  If you still have some questions on Brexit and the UK property market in the UK or are wondering, ‘will house prices drop after Brexit in the UK?’ feel free to contact our team at RWinvest.

                  We have experience and expertise in all things property investment and can talk you through our most promising investment options for 2023 and beyond.

                  Want to keep up to date with the latest market developments? Take a look at our blog, which covers everything from energy efficiency to the best places to invest.

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                  Author

                  Dale Barham

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                  Dale is a property news and onsite content writer at RWinvest.

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