Martin Lewis: How will Brexit affect house prices? Money Saving Expert’s advice revealed

The UK is expected to leave the European Union in March next year, but with many people looking to buy a new home, how will Brexit impact the housing market?

Martin Lewis says that the market is shrouded by uncertainty at the moment, so it may be difficult to know whether your deal is a good deal.

But, you should do your best to ignore the outside factors when buying a home, and aim to get a fixed-rate mortgage, he said on his ITV show, ‘The Martin Lewis Money Show’.

What’s more important is whether you’ve saved up a “decent” deposit, and whether you actually like the home you’d like to buy, he said.

“The one thing that is certain is uncertainty, said Martin Lewis. “That is what’s worrying everyone.

“A fixed rate mortgage is by definition ‘certain’. If you want certainty in these uncertain times, that’s what it does.

“Mortgage rates are still near historic lows. There isn’t that much room for interest rates to drop, and lots of room for them to rise.

“[What are the expected implications of Brexit?] Who knows? The Bank of England predicts a 30 per cent drop in the event of a ‘no deal’.

“That may be far-fetched, but it may be good for first-time buyers because it’s good price.

“I would ignore externalities. The more important thing is have you saved up a decent deposit? Is it a house you want to live in?

“I don’t think the period of uncertainty is expected to stop any time soon.”

Britain officially leaves the European Union on March 29 2019.

Business owners have expressed concern over the future of trade relations with the remaining EU 27 states.

But, how will Brexit impact property prices, and the housing market in general?

It’s unlikely that the UK’s exit from the EU will trigger a housing market crash, claimed Surrenden Invest’s Managing Director, Jonathan Stephens.

The housing market isn’t as quick to react as the stock exchange and currency, he said.

That said, there are some indications that the housing market is beginning to respond to the March 29 deadline.

“We’ve already seen indications that prices in London and the South East are beginning to dip, which is likely to continue as buyers finally let their pre-Brexit jitters play out,” Stephens told Express.co.uk.

Whether the UK leaves with a ‘soft’ Brexit, or a ‘hard’ Brexit, there will likely be a slowing down of the housing market, he added.

“However, I don’t anticipate any kind of immediate large-scale fall in prices – more a softening of the market as buyers hold their collective breath,” he said.

“The transition period, from March to December 2020, is key here.”