According to the latest Reuters, the UK house prices are likely to see a modest correction should the UK exit the European Union’s membership next month without a Brexit deal, with London’s overvalued housing markets to be affected to a greater degree.
“Negotiators are still scrambling to reach agreement, and if they fail then home prices in the capital, which has long been a magnet for foreign investors, will fall 3 percent in the six months after the March 29 split.
Nationally, prices will drop 1 percent, the Feb. 13-20 poll found.
However, a dip in the currency – a recent Reuters poll said sterling would fall 5-10 percent if there was no agreement – would make property cheaper for foreign investors, likely offsetting some of the uncertainty.
If an agreement is reached, and most economists think it will be, house prices will rise 1.5 percent nationally and 0.5 in London in the six months after.”