Could a 6% house price dip be on the cards?
According to research performed by accountancy firm KPMG, a dip in house prices of around 6% could be on the cards if a no-deal Brexit occurs. For those who own their own home, this could be a real nightmare – especially if you’re looking to sell up in the near future. But will it materialise? This post will explore more.
What the study says
The study was conducted by the respected accountancy firm KPMG, so it’s definitely something that should be looked at and considered. It suggests that a range of possible house price drops could occur, with some regions seeing a relatively low dip of 5.4% and others seeing a relatively high predicted dip of 7.5%.
It also ran some worst case scenario experiments, which make for grim reading for anyone who is overly concerned about the outcome of Brexit. It suggested that there was a possible drop of between 10% and 20% on the cards – and while that may be unlikely, it would certainly have far-reaching effects if it were to transpire.
Is it accurate?
It’s impossible to tell just what’s going to happen to house prices. In theory, it’s not out of the question that the 6% dip will materialise. Sellers may hold off until the market rises again, while buyers may be expecting even more bargains further down the line.
However, it’s important to remember that the 6% figure is a national average: some areas, such as London, are even more susceptible to falls, while Northern Ireland is also expected to be at risk. Problems with the housing market have been predicted before without them ever actually materialising, even in the context of Brexit. Overall, prices have increased by 0.9% in the year between June 2019 and now. In short, it’s impossible to predict the future, but certainly all sorts of things could happen.
If you’re looking to sell your property as quickly as possible due to Brexit or another reason altogether, we at National Property Trade can help. Learn more here.