House prices will go up due to Brexit

Study finds

On the day that the UK triggered Article 50, signalling its exit from the European Union, YouGov research commissioned by credit information provider, Equifax, reveals that Scots top the ranking when asked if they think Brexit will cause house prices to increase.

In the research conducted in February 2017, 43 per cent of Londoners said they think the average cost of buying a home in the UK will increase as a result of the country’s exit from the European Union.  Scots were the highest percentage in the UK with 44 per cent saying they think that prices could go up.

It seems that Londoners are the most worried about Brexit having a negative effect on property prices, with 18 per cent saying they think the average cost of buying a property could decrease. Just 9% in the North, Midlands and East think prices will fall as a consequence of the UK leaving the EU.

“The reality is that mortgage lenders will take a good look at a person’s financial situation when assessing an application,” explained Lisa Hardstaff, credit information expert at Equifax. “This includes looking at information on their credit report.

“If they have missed or made a late payment on a credit or service agreement, this could be a cause for concern for prospective lenders. Also, having too many credit agreements could indicate that a person is financially overstretching themselves. Too few, however, and a lender may find it difficult to assess how the person will perform when it comes to repaying their mortgage.”