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Is that good or bad news for Britons? Most tangible assets won't be leaving any time soon and nobody but banks will miss this amount in the banks' accounts. It'

Is that good or bad news for Britons? Most tangible assets won't be leaving any time soon and nobody but banks will miss this amount in the banks' accounts. It's very likely that real assets, like real estate will become a little more affordable. Car registrations fell here in Austria as well, despite good economic indicators, it's not a big deal.

arethuza 8y ago
"real estate will become a little more affordable" For many people in the UK any decrease in house prices is regarded as a very bad thing indeed.
- pc86 8y ago
  Only for people using real estate as an investment or their primary store of wealth.
  - zepto 8y ago
    Almost everyone who owns their home has real estate as their ‘primary store of wealth’.
  - jen20 8y ago
    In 2015-16, 62.9% of UK households were owner-occupied. A drop in house prices (which would be incredibly welcome for me, as a prospective purchaser!) would lead to negative equity for a significant number of voters in the south east and especially the south west - no political party wants to own that, though both major parties in the UK bear responsibility for it.
    - lazyjones 8y ago
      > would lead to negative equity for a significant number of voters in the south east and especially the south west This argument requires some hard numbers to make. A significant number of owners bought their homes a long time ago and won't be affected. A significant number of owners live in areas where prices were not affected by EU investment. A significant number of NEW prospective owners will have access to lower prices in currently extremely crowded markets. So, less alarmism, more facts and numbers please.
      - jen20 8y ago
        > A significant number of owners live in areas where prices were not affected by EU investment [Citation Needed] EU membership has improved the _entire_ economy, and thus house prices nationwide. -- I can't quite tell if you are from the UK or not, but fixed rate mortgages are not normal. Even purchasers who purchased 20 years ago commonly have to refinance their property every two years or so in order to get a fixed rate.
  - orf 8y ago
    Which is everyone with a house, yes. The housing ladder is a huge thing here.
  - Fordec 8y ago
    With the home ownership rate in the UK at 63.5%. Combined with only 19% of the population (never mind more stock value than their primary residence value) owning any stock, stock ownership among the general population there is not like the US. That basically means some majority of people there at least are using real estate as their primary store of wealth.
- marliechiller 8y ago
  "real estate will become a little more affordable" For many people in the UK any decrease in house prices is regarded as a very good thing indeed. (perhaps i'd be able to finally afford a property!)
  - tehbeard 8y ago
    If you can get a mortgage when the dust settles, and those holding the property decide to cut their losses rather than cling to it for dear life until it "bounces back".
    - lazyjones 8y ago
      What if those holding the property are among those who move their $1T out of Britain? The London market in particular was always under huge pressure from foreign investors.
  - 51Cards 8y ago
    For those who don't own, yes. For those who do own, and who banked on the value of their property for things like retirement, etc... or who will go underwater and into financial crisis... it's bad. There is always a two sided balance that has ripple effects in both directions.
- samuelfekete 8y ago
  The majority of people in London (where prices are most inflated) live in rented homes, with an average rent that is about the same as in San Francisco, for example, but with salaries that are about half or less. Foreign property investors shifting away from London will be bad for people whose primary contribution to the economy is buying up properties, and good for everyone else who lives or works in London.

arethuza 8y ago

"real estate will become a little more affordable" For many people in the UK any decrease in house prices is regarded as a very bad thing indeed.

pc86 8y ago
Only for people using real estate as an investment or their primary store of wealth.
- zepto 8y ago
  Almost everyone who owns their home has real estate as their ‘primary store of wealth’.
- jen20 8y ago
  In 2015-16, 62.9% of UK households were owner-occupied. A drop in house prices (which would be incredibly welcome for me, as a prospective purchaser!) would lead to negative equity for a significant number of voters in the south east and especially the south west - no political party wants to own that, though both major parties in the UK bear responsibility for it.
  - lazyjones 8y ago
    > would lead to negative equity for a significant number of voters in the south east and especially the south west This argument requires some hard numbers to make. A significant number of owners bought their homes a long time ago and won't be affected. A significant number of owners live in areas where prices were not affected by EU investment. A significant number of NEW prospective owners will have access to lower prices in currently extremely crowded markets. So, less alarmism, more facts and numbers please.
    - jen20 8y ago
      > A significant number of owners live in areas where prices were not affected by EU investment [Citation Needed] EU membership has improved the _entire_ economy, and thus house prices nationwide. -- I can't quite tell if you are from the UK or not, but fixed rate mortgages are not normal. Even purchasers who purchased 20 years ago commonly have to refinance their property every two years or so in order to get a fixed rate.
- orf 8y ago
  Which is everyone with a house, yes. The housing ladder is a huge thing here.
- Fordec 8y ago
  With the home ownership rate in the UK at 63.5%. Combined with only 19% of the population (never mind more stock value than their primary residence value) owning any stock, stock ownership among the general population there is not like the US. That basically means some majority of people there at least are using real estate as their primary store of wealth.
marliechiller 8y ago
"real estate will become a little more affordable" For many people in the UK any decrease in house prices is regarded as a very good thing indeed. (perhaps i'd be able to finally afford a property!)
- tehbeard 8y ago
  If you can get a mortgage when the dust settles, and those holding the property decide to cut their losses rather than cling to it for dear life until it "bounces back".
  - lazyjones 8y ago
    What if those holding the property are among those who move their $1T out of Britain? The London market in particular was always under huge pressure from foreign investors.
- 51Cards 8y ago
  For those who don't own, yes. For those who do own, and who banked on the value of their property for things like retirement, etc... or who will go underwater and into financial crisis... it's bad. There is always a two sided balance that has ripple effects in both directions.
samuelfekete 8y ago
The majority of people in London (where prices are most inflated) live in rented homes, with an average rent that is about the same as in San Francisco, for example, but with salaries that are about half or less. Foreign property investors shifting away from London will be bad for people whose primary contribution to the economy is buying up properties, and good for everyone else who lives or works in London.