There’s been a lot of talk about how Brexit will impact investors, employees, business owners, families and politicians. But what about millennials?
First, lets start by asking…
What is the Attitude of Millennials in Relation to Brexit?
- Young people want to play their part.
Millennials are smart, well informed and have a good understanding of Brexit… including all the complexities.
Millennials want their views, opinions and perspectives to be reflected in the Brexit negotiations.
- Millennials want a strong economy for secure jobs and good living circumstances.
Research shows that important priorities for Millennials are secure jobs, affordable housing and a strong economy.
Millennials want to know they have a secure future to build on. And a strong economy is needed to give them that assurance.
- A strong commitment to globalisation.
Millennials, more than other generations, are optimistic about the positive effects of globalisation.
They understand that the world is becoming more interconnected with increased trade and cultural exchange. What’s more, they support collaboration with other countries.
- Freedom to travel, work and study abroad.
Millennials want freedom and are concerned at losing opportunities, through Brexit, to travel, work and study abroad.
- Immigration is a lower concern compared to older generations.
Millennials are less concerned about immigration than older generations. Immigration is seen as the freedom of movement and the opportunity to bring positive benefits to the UK – rather than taking away from the economy or job security.
The important thing to note, is that Millennials want to be consulted throughout the Brexit process. They want to be engaged. They want their opinions to be heard.
How Does Brexit (or ‘No Deal’ Brexit) Impact Housing Affordability for Millennials?
One common concern is that Millennials in Britain are at the sharp end of the housing crisis. They feel the impact more than other generations.
The Government has admitted that the key to making housing more affordable is to build more. That’s why they are investing £9bn to create affordable housing.
They created the “Help to Buy” scheme and cut Stamp Duty for first-time buyers, to help people buy their first property.
However, the truth is that although there are schemes in place to help Millennial house-hunters, only 420,000 households have bought property through the “Help to Buy” schemes.
This is in sharp contrast to the 4.7 million households that are renting.
It is acknowledged that the cost of buying or renting a home is affected by issues that were present before the EU referendum was called.
These issues include:
• Lack of suitable affordable homes
• Lack of social housing
• The excessive cost of land
• The reality that house prices and renting costs are rising faster than wages
A ‘no deal’ Brexit could affect the economy which means it could impact housing prices and rental costs.
However, until more details around Brexit are agreed, the full impact won’t be known.
What we do know for certain is…
A ‘no deal’ Brexit doesn’t necessarily mean a weak economy, loss of jobs and a housing market crash.
Although there has been speculation that a no-deal Brexit may trigger a recession and higher unemployment, the experts say that the high level of risk and uncertainty has already been priced in the stagnant housing marketing.
A ‘no deal’ Brexit may increase hesitancy amongst buyers and sellers, leading to a reduction in the supply of houses offered for sale.
Investors still want to rent their properties and will be keen to lock in long-term tenants to provide security until the UK housing market settles.
What’s more, people will still be buying and selling houses, as people still move for many reasons… change of job, a growing family, marriage, divorce. These reasons are not impacted by whether there is a deal or no-deal Brexit.
The one thing all the experts agree on is that the UK housing market will start to grow again when both the buyer and seller confidence has returned.
The Next Steps
With the uncertainty of how a ‘no deal’ Brexit will really impact the housing industry; it is difficult to decide whether now is the right time to buy or rent.
Before you narrow down your search, write a list of the essential criteria. Be clear on what is important to you and your family.
If you are thinking about buying or renting a property, then we recommend you seek professional advice, so you can make a considered decision.
At REKA Property Management we give our clients the facts about the property industry.
So if you are searching to rent quality self-contained studios, rooms with ensuites, houses, flats and apartments for long-term or short stays in North, South, East and West London, then feel free contact us on +44 (0) 203 286 6468 or email us at lettings@RekaProperty.co.uk.
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P.S. Please share your comments below. Where do you currently live? How long have you been renting? Where do you want to live? I would love to know your experiences and thoughts on this topic. I hope our paths cross again soon.