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Generation Rent should vote BREXIT. Watch

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    Brexit will not affect house prices in areas with a high proportion of owner occupiers or areas with very few tenants from EU countries unless there are macroeconomic factors. Prices will fall in areas with a significant proportion of tenants from EU countries. These tend to be less fashionable suburbs and older terraced house neighbourhoods. What will happen is that as the number of people from other EU countries (especially eastern Europe) falls then there will be a situation of too many landlords chasing too few tenants. Many landlords will shrug their shoulders and sell up. A large number of houses at the lower end of the market will be up for sale. The sort that traditionally was bought by first time buyers and people on lower incomes before buy to let took off. With little interest in such houses by landlords and investors then prices of such houses will fall as the majority of buyers will be owner occupiers. So aspiring first time buyers will have their chance to become homeowners.

    Have you noticed that most landlords are in favour of Britain remaining in the EU?
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    (Original post by Arran90)
    Brexit will not affect house prices in areas with a high proportion of owner occupiers or areas with very few tenants from EU countries unless there are macroeconomic factors. Prices will fall in areas with a significant proportion of tenants from EU countries. These tend to be less fashionable suburbs and older terraced house neighbourhoods. What will happen is that as the number of people from other EU countries (especially eastern Europe) falls then there will be a situation of too many landlords chasing too few tenants. Many landlords will shrug their shoulders and sell up. A large number of houses at the lower end of the market will be up for sale. The sort that traditionally was bought by first time buyers and people on lower incomes before buy to let took off. With little interest in such houses by landlords and investors then prices of such houses will fall as the majority of buyers will be owner occupiers. So aspiring first time buyers will have their chance to become homeowners.

    Have you noticed that most landlords are in favour of Britain remaining in the EU?
    I very much doubt we will see big enough movements of EU migrants back to the EU to affect house prices. They are in the UK for economic reasons and if they did leave en mass, that means a serious problem with the UK economy like a big recession cutting jobs.

    Lending to house buyers during a recession is always low such as after the 2008 credit crunch so even if house prices do fall, the low availability of mortgages will hamper house buyers.
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    (Original post by Maker)
    I very much doubt we will see big enough movements of EU migrants back to the EU to affect house prices. They are in the UK for economic reasons and if they did leave en mass, that means a serious problem with the UK economy like a big recession cutting jobs
    It will depend on whether the government will impose work permits for workers from EU countries or whether there will be some 'grandfather' rights where workers from EU countries who arrived before the referendum can live and work indefinitely in Britain.

    Lending to house buyers during a recession is always low such as after the 2008 credit crunch so even if house prices do fall, the low availability of mortgages will hamper house buyers.
    If demand for buy-to-let mortgages falls due to a decline in the demand for rental property because most of the eastern Europeans have returned home then banks will have to start offering mortgages to homeowners instead. There will probably be a 'deflationary' stage where banks will be reluctant to lend but once prices have stabilised then it will be back to business as usual.
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    (Original post by Arran90)
    It will depend on whether the government will impose work permits for workers from EU countries or whether there will be some 'grandfather' rights where workers from EU countries who arrived before the referendum can live and work indefinitely in Britain.



    If demand for buy-to-let mortgages falls due to a decline in the demand for rental property because most of the eastern Europeans have returned home then banks will have to start offering mortgages to homeowners instead. There will probably be a 'deflationary' stage where banks will be reluctant to lend but once prices have stabilised then it will be back to business as usual.
    All workers already here if we vote out have the right to stay regardless


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    (Original post by Arran90)
    It will depend on whether the government will impose work permits for workers from EU countries or whether there will be some 'grandfather' rights where workers from EU countries who arrived before the referendum can live and work indefinitely in Britain.



    If demand for buy-to-let mortgages falls due to a decline in the demand for rental property because most of the eastern Europeans have returned home then banks will have to start offering mortgages to homeowners instead. There will probably be a 'deflationary' stage where banks will be reluctant to lend but once prices have stabilised then it will be back to business as usual.
    I don't think there will be a deflationary period, property in the UK is a very attractive investment for foreign buyers to park their money.

    I think that would keep prices high unless there was a lot of house building but again, I don't think that will happen either since housebuilders don't want lower house prices even if they can sell more houses.
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    (Original post by Maker)
    I don't think there will be a deflationary period, property in the UK is a very attractive investment for foreign buyers to park their money.
    Central London, yes.

    Less fashionable suburbs of provincial towns and cities, no.

    It's the second of these places where the majority of the eastern Europeans live. The same places where historically the majority of first time buyers bought their houses.
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    (Original post by Arran90)
    Central London, yes.

    Less fashionable suburbs of provincial towns and cities, no.

    It's the second of these places where the majority of the eastern Europeans live. The same places where historically the majority of first time buyers bought their houses.
    I think in the short term, say up to 5 years after Brexit, the property prices will actually rise because there will be increased migration to the EU to beat the 2 year deadline and more EU migrants will settle down because it would be harder to go in and out of Britain.

    The same thing happened to Commonwealth migrants mainly from the West Indies in the 1960s when immigration control to Britain was increased and more people settled permanently rather than just spending a few years in the UK to earn money to go back to live in their native country.
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    (Original post by mojojojo101)
    Absolutely not.

    The lack of housing is due to the UK governments inability to build new housing, especially housing that is affordable (their definition of that word is ridiculous) as well as the infrastructure necessary to deal with an increased level of strain on services.

    I also question the Conservatives (any other parties) motivations to really deal with the crisis when the investment returns are so massive. If the government acts to bring down prices to an even vaguely sane degree then that investment will surely evaporate and their economic figures start looking significantly worse.
    Ignorance is bliss.
 
 
 
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