Behind the controversial political facade of the EU referendum lies a simple case of supply and demand.
On 23 June, the United Kingdom will conduct a historic poll—one that will decide the country’s future as a member of the European Union. With Brexit, shorthand for the EU referendum, the UK, its citizens and (more importantly) its non-citizens will face more than a handful alterations to the way they live, primarily in the form of a mass mandatory exodus of immigrants. With their departure comes thousands of jobs open, loved ones left behind and houses unoccupied. The latter is especially concerning for the UK’s real estate sector, for obvious reasons.
Estate agents from Central Letting Services Ltd cite a significant potential drop in house and rent prices all over the country should the Brexit ‘Leave EU’ vote push through. They say that UK house prices have a chance of taking a £2,300 dip, while the average London house price may fall by as much as £7,500.
But, such a price reduction may not be so bad after all. For one, residents who remain in the UK, specifically private renters, now have an opportunity to purchase a home for themselves before prices rise again. Research data from the Centre for Economics and Business Research firmly points that normalisation.
According to the report commissioned by the organisation, not only will the Brexit’s impact on house prices be unequally present in different UK regions, but researchers also expect an influx of UK citizens returning home to take advantage of the temporarily more open market for homes (apart from the outright need to leave EU territory). They say that the increase of homebuyers in the country will likely balance out the sudden increase in supply.
Weighing for a right choice in the issue of Brexit may be near impossible. Come 23 June, the citizens would have to go with what they believe will serve the country’s interests best, from the jobs they hold to the homes they live in .