EU exit could cause 5% house price drop

An EU exit could see UK house prices drop by 5%, according to eMoov.

Related topics:  Finance News
Rozi Jones
22nd February 2016
euro, eurozone, flag, ecb

eMoov believes that an EU exit would cause a "nervous ripple effect" across the UK, with people delaying buying due to concerns over unemployment, GDP and business growth.

Since Great Britain joined the EU in 1973, the average house price has increased by over 2,000%. However eMoov believe that it won’t necessarily be leaving the EU itself that could see house prices drop, but the uncertainty amongst homeowners and buyers as to what will happen next.

55% of homeowners surveyed believe leaving the EU would impact the value of their property (34% think they could increase, 21% think they could decrease).

The resulting potential reduction in demand for housing will almost certainly cool the market according to eMoov, leading to a potential loss of £11,000 to the average UK homeowner.

Russell Quirk, founder and CEO of eMoov.co.uk, commented:

“Should the UK public vote to leave the EU, we believe it could have a detrimental knock on effect to the UK property market. We’ve been part of the EU for over 40 years now, so it’s understandable that such a momentous change will lead to uncertainty amongst the UK public, as to the resulting implications an exit will have on them.

"This air of uncertainty will lead to inaction amongst those looking to buy and sell and the resulting dwindle in demand, will always lead to a reduction in house prices. We believe it could easily drop by 5% maybe more, so the average UK homeowner could see their property reduce by £11,000 in value.

"Since we joined the EU the average UK house price has increased by more than 2,000%, but even just the potential of an EU exit could start to slow the market. So the results of a yes vote on the main stage of the EU could have a much larger impact on the UK as a whole.”

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