Is Brexit bringing the biggest house price adjustment since the Financial crisis?

Big Ben stormBloomberg seems to think this might be the case. Article is here.

I am not so sure. From what I have read this appears to be in relation to the premium bracket, the fall of which is well documented.

In the normal housing market I think people will wait and see as if you are renting and about to buy, all signs are there for a correction. While it does not make sense to buy right now there still is structural demand rather than commercial demand (by this I mean, people want homes but not at any price). Prices are not going up and there is an outside chance of them coming crashing down, particularly if the Brexit negotiations look anything like the Gibraltar debacle.

Buying now is risky and I can’t see the upside. I would keep renting and watching. Possibly take out a pound hedge (move money into dollars) as if Brexit goes south, the pound is going with it which means you will become poorer from a global perspective.

Is there a storm coming? I think so but how big it is and whether the new look London (without its immigration lifeline) will weather it? Time will tell…

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