Impact of Brexit on the Housing Market

This presentation analyzes the impact of Brexit on the UK housing market. It includes three resource analyses that investigate the possible impacts of economic performance of households over house prices, the effect of seller uncertainty on housing market, and the allocation and performance of pension savings as alternative kinds of assets in real estate business.

IMPACT OF BREXIT ON
THE HOUSING MARKET

TABLE OF CONTENTS
 Thesis statement
 Defining Brexit
 Defining EU- European Union
 First resource analysis
 Second resource analysis
 Third resource analysis
 Conclusion
 Bibliography

THESIS STATEMENT
 Brexit may affect the UK market in future for
suddenly being detached from the established
European Union.

DEFINING BREXIT
 Brexit refers to United Kingdom’s withdrawal
from EU or European Union.
 It has been followed by agreement of 51.9% voters
to leave EU through 2016 referendum.
 The actual action started in 2019 although the
votes have been gathered in 2016 because of a
lengthy negotiation between Eu countries and UK.
 As per the withdrawal agreement, a certain amount
has been fixed that UK needs to pay back to EU in
order to break al ties between them.

DEFINING EU
 European union refers to economic and political
union among 28 countries that take part in trade
together.
 This union allows people of these 28 countries to
move around other countries more easily.
 As an outcome of this union, a single internal
market has been developed where people of every
country has equal access.
 UK broke the agreement of this union when they
decided to leave EU.

FIRST RESOURCE ANALYSIS
Anenberg, Elliot. “Information Frictions And Housing Market
Dynamics”.International Economic Review57.4(2016):1449–1479.
 Research
 This source studies the effect of seller uncertainty on housing market,
especially on home valuations.
 In addition, uncertainty has been analyzed from the point of view of being
a critical performance determinant of housing market (Anenberg 1456).
 Methodology
 Quantitative method has been used here that includes home listing and
transaction information.
 Findings
 Rates of price appreciation show a short-lived predictability.
 Conclusion
 Brexit may have two risks for the people who intend at leaving EU.
 Implication
 this source is significant because it helps the researcher to go through the
factors that may be relevant in home-seller decisions and in buyer behavior.

SECOND RESOURCE ANALYSIS
Bruneau, Gabriel, et al. “Housing Market Dynamics and
Macroprudential Policies.” Canadian Journal of Economics/Revue
Canadienne Déconomique51.3(2018):864–900.
 Research
 This source investigates the possible impacts of economic performance of households
over house prices (Bruneau 871).
 Methodology
 Quantitative method has been used here for assessing the level of balance between
household debt and housing stock.
 Findings
 Household debts depend upon increasing house prices.
 As an outcome, ratio of debt-to-income declines as the household debts are increased.
 Conclusion
 Housing stock can effect the increase of household market performance.
 Implication
 This source can be useful in understanding the effect of economic factors of housing
market scenario.

THIRD RESOURCE ANALYSIS
Ramiah, Vikash, Huy NA Pham, and Imad Moosa. "The sectoral effects of
Brexit on the British economy: early evidence from the reaction of the
stock market." Applied Economics 49.26(2017): 2508-2514.
 Research
 Investigation of allocation and performance of pension savings as alternative
kinds of assets in real estate business (Ramiah 2511).
 Methodology
 Quantitative method has been used in this source research in order to assess the
heterogeneity in investment of real estate business.
 Finding
 Pension funds, as investment, has a higher chance of profitability and lower
chance of loss.
 Conclusion
 Irresponsible management of real estate business can affect the investment.
 Implication
 Stock investment is les profitable than real estate investments.

CONCLUSION
 Any uncertainty either from the part of buyer
or seller can affect dynamics of market.
 Brexit comes with possibility of such
uncertainty in UK market.
 Uncertainty can be termed as a critical factor in
assessing household market performance.

BIBLIOGRAPHY
 Anenberg, Elliot. “Information Frictions And Housing Market
Dynamics”.International Economic
Review57.4(2016):1449–1479.
 Bruneau, Gabriel, et al. “Housing Market Dynamics and
Macroprudential Policies.” Canadian Journal of
Economics/Revue Canadienne
Déconomique51.3(2018):864–900.
 Ramiah, Vikash, Huy NA Pham, and Imad Moosa. "The sectoral
effects of Brexit on the British economy: early evidence
from the reaction of the stock market." Applied
Economics 49.26(2017): 2508-2514.