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TODAY'S OTHER NEWS

Home owners' consumer group says Brexit may lead to house price falls

The influential Home Owners’ Alliance pressure group says Britain pulling out of the EU would probably depress house prices.

The HOA - a group which in the recent past has won considerable media attention and has been included in National Trading Standards Estate Agency Team consultations - gives a cautious warning on the possible perils of exit.

“There are quite a few reasons to think there could be downward pressure on house prices, upward pressure on mortgage costs, slightly lower moving costs, and more expensive extensions. So if you are mortgage free, trading up, with no plans to do building work, you could be better off. But if you have a big mortgage, are trading down and want to refurbish your new house, you could be worse off” claims Paula Higgins, founder and chief executive of the HOA. 

She says that stricter immigration controls, which may come if Britain left the EU, would reduce demand for housing “and so house prices are likely to rise less fast (or even potentially fall) – making it easier for first time homebuyers to get on the housing ladder.”

But she says post-exit labour shortages in the building sector could reduce supply and the possible dropping of Energy Performance Certificates - currently an EU requirement - could indirectly reduce the cost of moving house.

However, Higgins says the case against departure is not clear-cut and many now opposing exit also at one time advocated joining the Euro. “Like all economic predictions, this all comes with a blood-pressure raising big dose of salt” she says. 

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    This sums it all up ''“Like all economic predictions, this all comes with a blood-pressure raising big dose of salt”

    Well, at least she admits it!

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    Lack of international confidence in the UK, years of tying up "free" trade agreements, liaising with a mega-pissed off EU which is far bigger en masse than our economy, Frankfurt taking over from The City as the World's major financial centre (not forgetting New York), all these and more will lead to lack of investment and the greatest uncertainty in this country's future since there has been since the end of World War II. Of course house prices will suffer.

    Fake Agent

    Yep, agree with all this.

    At least she puts forward both sides of the argument and doesn't deal in scaremongering, speculation, lies, mistruths and half-baked stats. Our politicians - on both sides of the divide, could learn a thing or two.

    The Leave and Remain sides just spend most of their time trading insults with each other and refusing to engage in any serious adult discussion about the issues at hand.

     
  • Fake Agent

    All eminently sensible stuff. At least she tries to offer a bit of balance to things.

    Economic uncertainty is an inevitability if we vote for Brexit - no matter how much the Leave side insist it isn't. And house prices will suffer. You can argue whether that is a good thing or not, but many people won't want to take that risk.

    People are also putting off buying/selling a home in the lead-up to the referendum. The idea that everything is going to be smooth and rosy if we do vote to leave is a nonsense. The Out campaign still haven't come up with any actual vision for what happens when we leave. It's all pie-in-the-sky, everything-will-be-alright-on-the-night optimism. But they don't seem to have much of a clue, which is why they shout Project Fear to everything they disagree with.

    There are valid reasons to come out, but there are plenty more reasons to Remain and reform from within. The housing market and property industry has already taken a hit with all the hoo-hah caused, think how much it will be with 2 years of trade renegotiations carried out by Boris the clown, IDS, Gove and their merry band of helpers!

    Daniel Roder

    Agreed. Nice to see a bit of balance and nuance, for once. As you say, the tone of the debate so far - from both sides - has been playground level.

     
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