Apparently, if the UK leaves the EU, house prices will fall and mortgages will be more expensive. Ozzy, the Chancer of the Exchequer, and his tax minions have declared it so. We must believe without question.
House prices around here are insane. A perfectly ordinary semi-detached house with no garage will set you back a quarter of a million pounds. On that basis, a fall in house prices is not necessarily a bad thing.
Oh sure, homeowners want their houses to be as valuable as possible but consider – when the time comes to retire and downsize to a little bungalow, how many people can afford your three bedroomed semi-detached for the price you want? There is a limited pool of people who can get a mortgage that big and that pool gets smaller with every new tax.
It has to be someone on a very good income, in a job they can be sure won’t vanish in the near future, and who wants to live where you live now. There won’t be many buyers in most cases and they are going to offer less than you want because they know they have little competition.
So maybe you won’t get as much for your house but then the one you’re moving to will cost less too. In the end, your profit margin is likely to be much the same.
But… is it even true? Will house prices go down? Will mortgages get more expensive? Or is it just a scare tactic to make those homeowners think they might not get as much as they hope?
There’s one crucial question nobody in the news seems to be asking when faced with these doom-laden Brexit scenarios. They simply accept the declared ‘losses’ and don’t question the reasoning or calculations that have led to these conclusions.
Nobody is asking ‘why?’
Why is that?