THE HORNCASTLE PROPERTY BLOG

BROUGHT TO YOU BY HORNCASTLE'S PROPERTY EXPERTS

Hard Brexit could cause 850 properties to be dumped onto the local Property market

Article Simon Jory 2017-04-28
0

So all cards up in the air! A general election will be on the books, but one thing is for sure ... whoever gets the job to deal with Brexit has a hard job on their hands (I'm just glad its not me!) As it currently stands, by not assuring the rights of EU citizens in the UK, Theresa May has squandered an opportunity to give peace of mind to our EU co-workers working and living in Horncastle (and the rest of the UK).

No.10 Downing Street’s point of view is that in promising the rights of EU citizens in the UK, it will postpone the same guarantee to the 1.5 million UK citizens living in the other nations of the EU.

Putting aside the politics for one second, the simple fact is now Article 50 has been triggered, we have two years to make a deal with the EU; otherwise it will be a ‘hard Brexit’. Now you might not think a hard Brexit will affect you in your home in Horncastle ... but nothing could be further from the truth.

Hard Brexit Nightmare

Of the 133,400 people who are resident in the East Lindsey District Council area, 128,678 were born in the UK, 1,467 were born in EU countries from West Europe and 886 were born in EU countries from the former Soviet States in East Europe (the rest coming from other countries around the world).

The rights of these EU citizens living in the Horncastle area are not guaranteed and will now be part of the negotiation with Europe. It is true a lot of our EU next door neighbours in Horncastle will have acquired rights relating to the right to live, to work, to own a business, to possess a property, the right to access health and education services and the right to remain in a UK after retirement… yet those acquired rights are up for negotiation in the next two years.

So, what would a hard Brexit do to the Horncastle property market?

Well a hard Brexit could mean the nuclear option when it came to the Horncastle housing market. It could mean that every EU citizen would have to leave the UK.

In the East Lindsey District area, 1,026 of the 1,467 Western European EU citizens own their own home and (so they would all need to be sold) and 703 of the 886 Eastern European EU citizens rent a property, so again all those rental properties would all come on the market at the same time.

Hard Brexit and mass EU Migration would mean c. 850 properties being dumped onto the housing market in a short period of time, meaning there may be a reduction in local property values and rents.

While there is no certainty as to what the future will hold, both UK expats in the EU and EU citizens in the UK rights will no longer be guaranteed and will be subject to bilateral renegotiation.

All I ask is that the politicians are sensible with each other in the negotiations. A lot of the success of the Horncastle (and UK) property market has been built on high levels of homeownership and more recently in the last 10/15 years, a growth of the rental sector with lots of demand from Eastern Europeans coming to Horncastle (and the surrounding area) to get work and provide for their families. Many Horncastle people have invested their life savings into buying a buy to let property.

Much will depend on what is politically realistic. Unilateral knee-jerk reactions and measures caused by a hard Brexit may cause major disruption or suffering to the 3 million EU citizens living in the UK, but also everyone who owns property in the UK.

For more thoughts on the Horncastle Property market – visit the the Horncastle Property Blog

Sources:

  1. Rents - Sources are a combination of LSL, ONS, Belvoir and Homelet Index’s
  2. Property growth – Land Registry for the local council area
  3. Inflation – Bank of England
  4. Predictions – CW looking at both the press and your town’s historical data - Denton House Research

Leave a Reply

Your email address will not be published. Required fields are marked *

EMAIL NEWSLETTER

Fill in the form below to receive all the latest Horncastle property news by email.

MEET THE TEAM

Simon Jory

Simon Jory

Simon has been in Estate Agency for over 32 years and is a Fellow of the National Association of Estate Agents. Having working in all kinds of changing market conditions he is well placed to advise on how best to sell your home.

Anne Pearce

Anne Pearce

Anne prides herself on working to the highest standards and believes everyone should receive the best possible customer service. With over 20 years' experience she will not miss and opportunity.

Dawn Bannister-Law

Dawn Bannister-Law

Prior to moving to Lincolnshire, Dawn was a valuer for more than 19 years in Bakewell in the Peak District. Dawn strongly believes buyers, sellers, landlords or tenants are all as important as each other

RECENT POSTS

1 in 11 rental properties in the Horncastle area may be illegal in 2018Horncastle Homeowners Are Only Moving Every 16 Years (part 2)Horncastle Home Owners Are Only Moving Every 16 Years (Part 1)Horncastle Wages Outstrip House Price Growth by 10.04% since 2007The cost of moving up the property ladder in Horncastle

CONTENT BY MONTH

November 2017October 2017September 2017August 2017July 2017June 2017May 2017April 2017March 2017

LOVELLE ESTATE AGENCY

Lovelle Estate Agency provide first class estate agency services within Lincolnshire & East Yorkshire regions. Having seen a change in the company's structure at the beginning of 2006, we have grown to the region's leading agency. Marketing and customer service are the focus of our team of dedicated professional staff.

We are privately owned. We cherish our independence because it motivates us to care about every single thing that happens within our company. It inspires us to constantly improve our service and that keeps us where we want to be - out in front. You can get a flavour of what independent thinking creates when you visit our offices positioned at strategic locations within the area. What do people see when they visit us? A dynamic, result driven technologically advanced company that mixes professionalism with passion.

Lovelle Estate Agency
www.lovelleestateagency.co.uk
Return to the top of the page  |   Return to Home Page