Rating agency Fitch Ratings says that the exit of Great Britain from the European Union could have a negative impact on housing market in the long term. However, according to Fitch's press release, it will not lead to a deep reduction of Great Britain's sovereign rating. "Markets are feeling the uncertainty in relation to Brexit plans and schedules cound affect on buying or renting the property", - analysts say. - Britain must exert maximum efforts to support the economy. This factor will be a key for indicator of vacancy and the extension of leases in long run".
Experts from Fitch conducted research which showed that sellers do not want to reduce real estate prices. Also it is still not clear whether banks will refinance current loans. And whether they will change conditions for future refinancing.
According to statistics, the average level of rent for a house in London for July decreased up to 1280 pounds in annual terms. This level was fixed for the first time for last 5 years. Realtor portal Rightmove reported that over the past 4 weeks housing prices fell by 1.2%. Last month, housing sales falling level amounted to 8-year-old minimum. Meanwhile, the leading British banks Barclays, HSBC , and Santander UK announced the reduction of interest rates on mortgages. Before that there was reduced base rate of the Bank of England.