LETTING & ESTATE AGENT

Will a Cornish Brexit help or hinder?

Will a Cornish Brexit help or hinder?
There are many arguments for and against and the experts can't seem to make their mind up about. The National Association of Estate Agents and Association of Residential Letting Agents say that although there are no conclusive 'leave' or 'remain' arguments for the industry in the EU referendum, a 'Brexit' “could have long-lasting and damaging consequences.â€

But what does this mean? There have been several points raised by the property industry. One argument put forward is that, if we were to leave, the European makeup of the current construction workforce may be put at risk and therefore leave housebuilders short staffed leading to less houses being built.

I have to ask though if this is really accurate. Wouldn't this just mean than more British people would be employed, more apprentice positions would be created and in turn we would end up with a more educated skilled British workforce?

A second argument raised is the effect a 'Brexit' would have on foreign buyers. Roughly 17% of London's prime market were sold to non-UK residents in 2014, and I am sure that some of these sales led to purchases here in Cornwall and the South West but it's very hard to track and establish a direct connection between the two. If foreign buyers are put off by the 'Brexit' then I would think the gap would be filled by those UK based buyers that are competing with the current foreign investors, and, while this may mean a slight dip in house prices, the London market is so strong it would soon recover.

The last point of discussion would be the reduced 'migration flow' impact of Britain leaving the EU, leading to less people moving to the country for work, reducing the demand on both the sales and rental market. This I can believe in, and I do think it would have an impact nationally, to what level however, it is very hard to say.

The forecasters have said that a Brexit would cut levels of immigration and depress future price rises, leaving the average UK house worth £2,300 less in 2018, and £7,500 less in London. The same forecasters have estimated that the population of the UK will be 1 million less than projected by 2026 if a 'Brexit' takes place, cutting the demand for buy-to-let properties. Even the chancellor, George Osbourne has said at the recent G8 summit that house prices 'could fall between 10% and 18%' and he would expect 'mortgages to become more expensive' although of these statements have been classed as 'scaremongering' by the 'Leave' campaign.

Staying in the EU seems the low risk option in that history has shown any sort of change tends to have impact somewhere. The price of your house or the strength of a rental investment along with the future of the housing market will certainly impact the public's decision to vote to 'stay' or 'leave'. So what would a 'Brexit' do to Cornish house prices . realistically I don't think anyone can say. Guess we will find out after June 23rd.