We’re not even a week into 2021 (at the time of writing) and already this month is one for the history books. After four and a half years of negotiations, the UK has officially left the European Union as of 1st January, we plunged back into a nationwide lockdown to combat the effects of the new strain of Coronavirus, and somehow the UK housing market continues to go from strength to strength despite the wider economic chaos.
The big question on everyone’s lips however, is whether Brexit will affect the housing market this year?
While it is early days yet and we cannot forecast far into the future, we should take the housing market’s recent resilience against the economic chaos from the COVID-19 pandemic as a good sign. In the most basic sense, there shouldn’t be much of a difference to our housing market as a result of leaving the EU, however there may be some wider implications that cause a ripple effect such as people potentially losing work due to Brexit, which could lessen demand for new homes.
Another issue to be considered is the ability to import and export materials to/from the EU. In the UK we do rely on importing building materials from the continent for our housing production and so delays on being able to bring materials in from the EU, as well as potential rising costs in said materials, could have a negative impact both on the time it takes to build homes in the UK and the number of homes that can be built.
One thing that is crucial to remember however, is that no matter whether we’re a member of the EU or not, the housing crisis in the UK still remains a very real and pressing issue and therefore, until the housing crisis is over, there will continue to be a very real demand for new homes and the land they’re built on across the country.
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