New research has found that that a majority of Britons that think house prices will fall in the event of a Brexit vote believe it will take five years for the market to bounce back.
According to Wellesley Finance, six in 10 Brits who think that their house price will decrease if Britain leaves the EU believe it will take five years or more for the value of properties to recover.
More than a quarter (29%) of those who think that their house price will decrease in value if Britain votes to leave the EU believe that it will take 10 years or longer for the UK property market to stabilise following a potential exit from Europe.
These fears are greatest in the capital, with almost three quarters (72%) of Londoners worried that the price of their property will plummet saying it will take five years or more for the market to recover.
Graham Wellesley, founder and CEO of Wellesley Finance, said: “These figures show that people across the UK are deeply worried about how their properties will be affected if Britain votes to leave the EU later this month.
“We believe that a short term drop in property prices is due to the short term uncertainty. Prices in Central London above £1.5 million have seen a slowdown already due to changes in stamp duty and the availability of funding. The property market under £1.5 million appears to be stronger.
“Buying a home is a huge investment and a major life event for the majority of Britons so is an understandable concern in the upcoming referendum.”
It has been reported in the national press that some buyers worried about property prices crashing are being offered a Brexit get-out clause which will allow them to back out of a deal if Britain leaves the EU.
UK house price growth has slowed in the run-up to the EU referendum over uncertainty surrounding a possible Brexit vote as buyers hold-off to see how the market reacts.
According to estate agency Haart, UK house price growth slowed in May to 0.8%, down from the 1% increase reported in April.
While investors are being more cautious, analysts believe that the fall in demand is also a result of buyers bringing forward transactions to beat the April stamp duty deadline.
Last month, Chancellor George Osborne warned that a Brexit vote could send house prices plummeting by up to 18%.
With the average cost of a house in the UK now £292,000, this means prices could fall between £32,000 and £57,000.
A recent report from the Royal Institute of Chartered Surveyors found that while prime property prices in London will likely fall if the UK decides to break away, house prices in the rest of the country are likely to weather the market turmoil following a Brexit vote.
The reality is no one knows the reality and constantly being negative will not help the economy, housing or the Country at large! We can assume all sorts of tales of woe, but, we have a Supply and Demand problem, not enough houses for the people that want them, so prices may drop, but, will be as bad as what is predicted, I mean we have threats of Famine, Pestilence to such mass unemployment no one left in the country will actually have a job, other than the Politicians!
I think we need to be more positive, no matter which way and deal with it as we have always done, in our stride, we adapt, overcome and triumph, that is the real key to making sure we achieve the end goals of a successful economy, housing market and ultimately country.
My biggest question though, is if the PM and all of the rest of them, who have forced this referendum on the people (I believe Cameron, was looking for a legacy and the referendum was his, but, its backfiring on him) Surely if all of the things were true, we would not, sorry Should not be voting now. So was the PM irresponsible or incompetent in his decision making over the referendum?
The wheels are in motion and its pointless looking at scare tactics to get peoples vote, a more reasoned approach, may have got more people on the remain side, but, they have ran a programme, that even Stephen King would admire