Impact of Brexit on the Housing Market

Impact of Brexit on the housing market
The prices in the housing market works as indicators of known data set including all
kinds of available experiences and knowledge gathered in a particular time. This is so because
the prices hint at the housing market performance and thus the details of the prices help in
investigating the impact of investment decisions on housing market performance. These prices
respond negatively or positively to the newly available data. Uncertainty is a kind of threat to the
market dynamics and this can be easily understood in the context of Brexit. Brexit refers to the
collaborative withdrawal of the people of United Kingdom from EU or European Union by
untying the long-term economic partnership between them. This sudden shift has come with
several kinds of uncertainties in the Brexit situation. For example, a burning question lingers in
the sudden economic departure that is whether the Brexit will happen or not and this has been
creating serious tension in the whole housing market.
This study has focused mainly on the possible impact of Brexit on the market of UK for
analysing the role of uncertainty in the public opinion in influencing the balance in the property
market. In order to be more specific, the focus of the study has been on whether uncertainty in
the decision making of seller or buyer can determine the housing market performance or not.
Other possible variables or determinants of market performance have been identified in this
study. For that reason, various sources have been reviewed in order to investigate the connection
between the sudden negative shift in the UK market and the Brexit situation. Finally, some
expert opinions have been presented that are important to analyse the recent drop in the
confidence level of all the sellers and buyers in the property market.

Annotated bibliography
Anenberg, Elliot. “Information Frictions And Housing Market Dynamics”.International
Economic Review57.4 (2016):1449–1479. This source revolves around discussing the
impact of uncertainty from the part of seller over the investment decisions in the housing
market. The evidences, used in this source are reliable because only primary source of
data has been used in order to establish the point that uncertainty does affect housing
market. The main finding of this source is that rates of price appreciation show a
comparably low-run predictability. In addition, the finding also shows that behaviour of
the house buyer works as predictability subset for the upcoming housing market scenario.
The importance of this source in this study lies in the fact that the relevant factors behind
the micro decision taken by house sellers while facing uncertainty in the market. This is
so because the above mentioned situation is highly similar to the situation of Brexit. Over
all, the source is well researched and is valuable for this study.
Bruneau, Gabriel, et al. “Housing Market Dynamics and Macroprudential Policies.” Canadian
Journal of Economics/Revue Canadienne Déconomique 51.3 (2018):864–900. This
source focuses on the impacts of household economic performances over house prices.
For that reason, quantitative method has been used here in order to measure the level of
balance between household debt and housing stock. The main finding of this source is
that housings market shock can positively impact enhancement of market performance.
This source is useful for this study because it is able to give needed data so that the
possible economical factors behind supply and demand of houses can be understood.
Moreover, the economic factors behind the Brexit situation can be well analyzed through