Impact of Brexit vote on housing market may not be felt for years

The UK’s housing market is unlikely to feel the full impact of ‘Brexit’ for a number of years, delegates at the Financial Services Expo heard yesterday.

A panel of mortgage experts – Gary Salter (Nationwide Building Society), Adrian Moloney (One Savings Bank), John Coffield (Paradigm Mortgage Services) and Jason Berry (Uinsure) – were asked their views.

Coffield said: “My view is that it will be two to three years until we start to see the full effects of the EU vote.”

Moloney said the market had yet to see a Brexit effect. “The good news is that lenders are looking to lend,” he said. “There is no shortage of funding at the moment, which is obviously a positive.”

Uinsure’s Berry, however, cautioned against an overly optimistic view. “Housing is in crisis in my opinion,” he said. “The new housing minister, Gavin Barwell, has a big job on his hands. The fact we do not have enough housing stock will affect the number of housing transactions.”

The conference also heard that the Financial Conduct Authority is to launch a Mortgage Market Study by the end of this year.

It will focus on competition issues faced by consumers.

Deb Jones, director of competition at the FCA, said the regulator was not “looking to tear everything up”.

Addressing concerns that the study could result in a whole new raft of fundamental changes for the mortgage market to introduce at a time when it was still working through both the MMR and the MCD, Jones said: “We recognise there is a fear that the Mortgage Market Study will lead to another wholesale change in the way the market is regulated. However, previous market studies have not resulted in a radical overhaul of the rulebook.”

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2 Comments

  1. StatementOfFact

    Sounds like “we don’t know what the future will bring” to me.

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  2. Johna

    For what I know, initially property and housing prices did rise, due to the pound loosing so much grounds, but for what I see in the telegraph and thisismoney, at the moment there’s a slight chilling in the housing market. Property prices are holding while the number of buy to let landlords has decreased drastically in july (according to this is money – home owners and first time buyers were also on hold in july), while in The Week.co.uk they say the opposite… Maybe the sea of landlords and tenants is adapting to the post-brexit property market? Personally, I think that prices of both property and rent will only rise. As and end of tenancy cleaner I talk a good number of landlords in person, beside my own attempts of monitoring media, and what literally all property landlords say is that due to what happened with the pound and the rising demand of tenants, both housing and buy-to-let prices will only go up.. Of course, I am just a home cleaner and this is only my absolutely subjective opinion. What I can tell for sure is that the price of cleaning services is also slowly rising.

    Johna,
    professional after tenancy cleaner coordinator at the https://fantasticcleaners.com/end-of-tenancy-cleaning/ housing clean department for greater London.

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