What will Brexit mean for the UK housing market?

What will Brexit mean for the UK housing market?

Britain will soon go to the polls to decide if they should leave the EU or remain a member. Discussion has been fraught with contention over free trade, membership fees, and immigration. The impact on housing has not yet taken centre stage, but it could still have a big impact on UK homeowners. We take a look at the main arguments.


House Prices

Chancellor George Osborne told the BBC that he expects houses will be worth up to 18% less than their current value by the year 2018 if Britain leaves the EU.

He said: “In the long term, the country and the people in the country are going to be poorer. That affects the value of people's homes... And at the same time, first-time buyers are hit because mortgage rates go up, and mortgages become more difficult to get.”

The Vote Leave campaign doubted the truth of this claim from the Treasury. They also suggested that there could be upsides of lower house prices.

"After we Vote Leave, we will be able to support the construction industry with the talent it needs," Vote Leave chief executive Matthew Elliott said.

"The biggest pressure on housing supply is immigration which has made buying your first home and even renting unaffordable for many."

Investment bank Credit Suisse also predict house prices to fall. They say that in the immediate aftermath of a vote to leave house prices would fall slightly due to weaker incomes.

Even with short-term uncertainty, Hansen Lu, a property economist at Capital Economics, thinks that prices will remain stable if Britain leaves the EU.

"Altogether, uncertainty in the short term might lead to a small drop in transactions and a slight easing in house price growth but we think the prospect of Brexit driving a collapse in prices is slim.”


Uncertainty means less investment

"In times of uncertainty, it’s easier to sit tight,” said Andy Pyle, head of real estate for KPMG. “Since the commitment to an EU referendum, the real estate community has been noticeably reticent about investing in the UK.”

While this is already happening while the EU vote looms on the horizon, leaving the EU will bring about more long-term uncertainty. If many large-scale investors follow this prediction, it could have a negative impact on the UK’s existing housing crisis.


Central London investment

With a far higher proportion of foreign investors than anywhere else in the UK, Central London stands to lose the most. Potential buyers and developers may want to monitor the market before signing on the dotted line.

Speaking to The Telegraph, Randeesh Sandhu, chief executive of Urban Exposure, a residential development finance provider, said: “Uncertainty will affect capital flows into the UK. A lot of developments are funded by overseas capital, and some of that might want to watch and see how the markets play out before they invest.”

However, it is not clear how many of London’s housing investment are coming from outside the EU.

Columnist Ross Clark argues in the Spectator that foreign investors are buying in London for schools, lifestyle, and a history of rising house prices. Brexit should therefore not dissuade them.


House building

While Capital Economics don’t think a leave vote will have a large overall impact, they do think that house building will be forced to slow if foreign workers are made to leave.

"With the latest Home Builders Federation data reporting that 41% and 32% of housebuilders consider labour availability and costs to be constraints on production, a shortage of workers has been holding back housing starts,” wrote Hansen Lu.

"Admittedly, according to the 2011 census, only around 10% of those working in construction were foreign born, although given post-crisis labour trends, that figure might be closer to 12% now. Yet given that it takes years to train skilled tradesmen, immigration reflects the easiest route to meeting the current labour shortage. Thus, if it compounded existing labour shortages, Brexit could have a lasting, dampening effect on housing starts."


While the campaigns have different views on what will happen to the housing market if Britain leaves the EU, there is one thing that they do agree on: no matter what the outcome of the impending referendum, it will have an effect on investors and house prices.


To find out more about what Brexit will mean for housing, visit the sources used in this article:






25th May 2016

More from Fine & Country

Top 10 contemporary kitchens from around the world
The kitchen is the integral part of any home. Bringing family and friends together, it fills our home with warmth, love, and above all, food...
15th Jan 2019
Property Housing Market Report: January
The start of 2019 looks set to continue in much the same vein as the end of 2018, with Brexit discussions continuing apace and the deadline...
9th Jan 2019
Property Housing Market Report: December
Although the festive season is upon us, there is little seasonal cheer and ‘good will to all’ evident across the political arena. Brexit con...
5th Dec 2018





We just wanted to thank our customers for putting their trust in us to sell their home. We take the instruction to sell a home as a privilege, an honour and serious commitment. Our dedication and their trust in us means that,we are the fastest growing premium estate agent in England and Wales over the past 12 months*,attracting buyers from all over the country and further afield. We look forward to continuing to deliver results for our customers. For more information and a free valuation please click here »


Selling your home is one of the most important decisions you make; your home is both a financial and emotional investment. Find out how we can help »



Every Fine & Country agent is a highly proficient and professional independent estate agent, operating to strict codes of conduct and dedicated to you. They will assist, advise and inform you through each stage of the property transaction.


With offices in over 300 locations worldwide we combine the widespread exposure of the international marketplace with national marketing campaigns and local expertise and knowledge of carefully selected independent property professionals.



People buy as much into lifestyle of a property and its location as they do the bricks and mortar. We utilize sophisticated, intelligent and creative marketing that provides the type of information buyers would never normally see with other agents.


Access the lucrative London and international investor market from our prestigious Park Lane showrooms at 121 Park Lane, Mayfair. Our showrooms in London are amongst the very best placed in Europe, attracting clients from all over the world.



An overwhelming majority of those who had used Fine & Country would recommend our services to a family member or friend, according to our most recent survey taken by members of the public.

To achieve 98.96% positive feedback is a privilege and we will endeavour to maintain this result, as we are dedicated to offering the best possible services to every customer, whether buyer or seller, from beginning to end.


Our consistent efforts to offer innovative marketing combined with a high level of service have been recognised by the industry for an astounding fifth year in a row, winning Best International Real Estate Agency Marketing at the International Residential Property Awards.

Independent customer reviews

Fine & Country

4.87 out of 5 - based on 1080 customer reviews

Estate Agent and Letting Agent Reviews


Our International Network

Connecting offices on over 300 locations worldwide, our referral system combines local knowledge and expertise with an international network to find the right buyer for you wherever they are, at the same time as finding you your ideal next move

Our International Websites

United KingdomRussiaFranceHungaryCyprusGermanySpainPortugalUnited Arab EmiratesRomaniaMauritiusMoroccoNamibiaWest AfricaSouth AfricaAustraliaFloridaZimbabwe


We interact with customers on the main social media channels including Facebook, Twitter, YouTube, LinkedIn, Pinterest and Google+, giving each property maximum online exposure.




Access Fine & Country Interior Design to put your property ahead and make it stand out. With expert advice from some of London’s best stylists and designers we will make sure it makes a statement. Or if you’re purchasing with us, let F&C ID help make your new house feel like home by helping you find the very best specialists and designers for property refurbishment. Find out more »



We have partnered with Rational FX, one of the world’s leading foreign exchange specialists to provide private and tailored currency services for all of our clients buying and selling luxury property around the world. Find out how we can help »


Our internal Media Centre is a team of experienced press relations managers and copy writers dedicated to liaising with newspapers, magazines and other media outlets to gain extensive coverage for our properties in national and local media.



We organise and attend a series of events throughout the year. If you are interested in attending or if you would like to promote your properties at any of these events, do not hesitate to contact us.View our list of events »




The Fine & Country Foundation is dedicated to supporting and funding homeless causes in the UK and overseas. Fine & Country offices organise a range of fundraising events for you to get involved in and/ or support. Find out more about our work here. Read more »

*Please, note: for security reasons, the maps on this website do not provide the exact location of the property and they are provided solely as an indication of area.