LETTING & ESTATE AGENT

EU Referendum - Could it have an impact on Tamworth?

EU Referendum - Could it have an impact on Tamworth?

A Brexit report has been created by NAEA (National Association of Estate Agents) alongside the Centre for Economics and business Research.

At the moment it's not known what policies may be introduced should the UK leave the EU, however, should greater restrictions be imposed on workers coming to the UK, this could affect the housing market. Despite the Government's pledge to build 1 million new homes by 2020, without the workforce to build these homes, they will never be built due to lack of manpower. At present 5% of national construction workers were born outside the EU.

What could this mean for Tamworth though? If stricter measures were brought in to control migration into the UK, this could severely affect Tamworth. Thousands of EU nationals live and work in Tamworth, with many employed as warehouse operatives. If measures were brought in which reduced this workforce, demand for rental and sales properties would undoubtedly drop. With a lack of demand comes a fall in price.

The one positive from this is that it could help first time buyers. Any drop in property values would make it easier for them to be able to afford their first home. However, landlords and those who already own their home may face a drop in the capital value of their property, especially as private renting is the most popular choice for residents from the EU (NAEA reports expect the population of the UK could decrease by 1.06m people).