Posted on Wednesday, July 6, 2016
The fallout from the Brexit has only really just begun so predicting what is going to happen in the coming weeks and months in Leicester’s property market is nigh on impossible. That said, we have spoken with numerous landlords and investors who are very worried about what this could mean to the property prices in the local area. Equally, we have spoken with several people who are also looking forward to a potential dip in the property market, making it easier for first time buyers and more lucrative for buy-to-let landlords to secure property at a lower price than where we are currently at.
As in all property markets it is likely to be the bottom end of the market, the terraced housing and ex-local authority housing that is likely to be the first to feel any effects from the EU Referendum. This is especially so in Leicester where a high % of the population are from ethnic backgrounds and this demographic has been very active in purchasing property in the lower end of the market across the city in the last 18-24 months.
Regardless of what happens, bricks and mortar will always be a strong proposition for investors and we can still say, that even despite the fiasco of the 2008-2009 house price crash, that on a 10 year rolling basis, property always comes out on top! A little volatility in the market creates opportunity for shrewd buyers and a blip in the recent house price increases would not be the end of the world for estate agents either, allowing the good agents to really capitalise on any weakness shown by agents that have popped up recently in the light of the positive market.
We have had a mini-boom over the last 2 years and we should always remember, “The bigger the boom, the bigger the bust!” I anticipate a”mini-bust” will be along in the next 2 years, but nothing to rival the bad times of the previously mentioned house price crash we suffered at the end of the last decade.