Exiting EU To Reduce Homes Being Built?
28 June 2016
What can the exit from the EU mean for the housing market? The Guardian has published an article that may see one consequence on the housing crisis if Britain leaves, possibly worsening the crisis for the future.
Some of the biggest house builders in the UK have claimed that those who are first-time buyers will have a hard time getting on to the property ladder if Britain leaves the EU, as fewer homes would be built, or will be built at a slower rate than they are now. House builders such as Barratt Homes, Berkeley Group, and housing associations such as Peabody have published an open letter, in which they have stated that Brexit – as Britain’s exit has been known colloquially as – would put the dream of home ownership at risk. This comes after a report from the Treasury weeks ago which suggested that house prices could crash by up to 17% upon the departure of the UK.
However, on the other side of the coin, the article mentions that the Leave campaigners believe that this is a ploy from the Remain camp to scare first-time buyers, and in fact these ones are not averse to the housing market having a cooling off period if there is to be a crash.
But as no one is sure what the future holds for an exit, most experts have said that a vote to leave would create ”considerable uncertainty for Britain”, according to the house building companies, and that it would mean ”investment will suffer as confidence in the economy wavers”, and so as the economy falters, this would mean that it would be harder for house buyers to come up with the money to buy their first property. The supply for homes would be greatly damaged by the exit, as the import as important materials such as bricks would be disrupted.
But the leave campaign has argued that a departure from the EU would benefit younger first-time buyers wanting to get onto the property ladder, as staying in the EU would make it more difficult. Chris Grayling, the leader of the House of Commons, encouraged young voters to consider the ”practical consequences” of remaining in the EU, adding that the lack of control on migration has contributed to the housing crisis today.
Rest assured the experts will be looking closely at the forecast for the housing situation.