In 2017, I purchased a modern two-bedroom flat in Essex with a staggering value of £400,000. Sadly, the value of the property has now dropped by 10%. The fact that I have lost more money than I originally invested, infuriates me. And I am far from alone.
Launched in 2013, the government-sponsored Help To Buy scheme came like a godsend to all of us who had been sharing rented accommodation with total strangers. All you needed was a 5% deposit and a clean credit score. I duly signed up and was accepted.
However, as soon as a majority of the British electorate voted in the June 2016 referendum to leave the European Union, property prices, which had been rising for years, started to level off, then decrease. At first the decline was marginal. In September last year, the average value of a property in London had dropped, but remained only 1.7% below its peak. Since then, however, the slide has steepened sharply. Brexit chaos has dissuaded potential home-buyers from entering the market, and existing owners are having to accept a haircut.
The housing market is not the only sector suffering because of Brexit. There is a notable slowdown in the construction sector as well, a survey conducted by the Guardian shows.
From my standpoint and also considering the situation the property market is currently undergoing, I would not recommend investing in property right now. Although some might see the current uncertainty as a great buying opportunity, if house prices continue to slide it could also leave you in dire straits financially.
Uncertainty and delays over Britain’s departure from the EU have driven the property market down. Homeowners like me made an investment hoping for decent place to live and a potential financial return. Right how it looks as if we were sadly mistaken.
