Britain has voted to leave the EU on June 23 causing not just changes in the currency exchange market but also a significant impact on the property market. This exit decision will cause the UK economy to falter as predicted by many business experts.
The impact of the Brexit is tied to the economy. It is predicted that the property prices in the UK will fall after this decision taking the hardest hit known as the
“Brexit bubble” causing the price drop mainly in London. The reason for that is the lack of demand for properties and the tumbling value of the British pound which is considered the biggest drop for the sterling in over 30 years. This will impact prices of building affordable homes which will rise by 15% once the UK officially exits the EU. Many of the construction workers are from different parts of Europe, and there will be new cross-border limitations.
The drop in prices will attract more foreign investors as the currency exchange rate is in their favor. However, more than 1 million Brits living in Spain, and another million in other parts of Europe can cause major fear of new tax laws for British citizens owning properties in Europe. Working right laws may also change and cause less investment in Europe by Brits.
The same is true for the 3 million European citizens working and living in Britain. Membership of the EU permits EU Citizens & residents to live and work in any part of the European Union without any limitations or barriers. According to international law, the Brexit should not affect British expats living in Europe, and they can remain in the country of residence.
British investment banks have warned to withdraw thousands of jobs from the EU, while the European Central Bank has warned it would cut out trade out of the UK foreign exchange market. This catastrophic situation has caused tension in the banking system both in the EU & UK.
The Referendum negotiations are still taking place to assure the best interest of every citizen and resident.
According to BBC News who stated that “There is no guarantee that British citizens current rights to live, work, travel, own property and access public services such as medical treatment in the EU would be maintained, and their continuation would depend on new agreements the UK negotiated with those nations.”
