Brexit is likely to see a significant drop in house prices as sellers sit tight and wait to see how the property market reacts.
Predictions about property prices and buy to let are hard to call as the economy is now about to enter uncharted waters.
Not only has the 52% to 48% Brexit victory triggered a major economic upheaval, but the seismic effects will churn the political landscape as well.
Prime Minister David Cameron has already resigned after leading the remain campaign to defeat.
Expect Chancellor George Osborne to follow after backing Cameron to the hilt over staying in the EU. His position in a new government is likely to become untenable.
Calls have already started to unseat labour leader Jeremy Corbyn, whose lacklustre support of staying in the EU failed to rally Labour voters.
Meanwhile, the City has seen billions wiped off the value of Britain’s biggest companies and the Pound has plunged against the US dollar and euro.
Inflation is expected to rise, exports will become more expensive abroad while imports will sell for less in the UK.
Uncertainty will prompt many home owners and property investors to protect their cash. Many are likely to want to see how interest rates will go before committing to a significant long term purchase such as a new home or buy to let.
Richard Donnell, insight director at Hometrack, said: “The immediate impact is likely to be a fall in housing turnover and a rapid deceleration in house price growth as buyers wait and see how the economy is affected.”
The Council of Mortgage Lenders is asking borrowers to keep calm.
“In the short term, people’s attention will be on interest rates and what impact this will have on mortgage costs. While markets are bound to react to the news, the question will be how long it takes for them to settle,” said a spokesman.
“In the medium term, there will also be interest in the extent to which housing transactions are affected by economic uncertainty, and whether this will impact on house prices. The more quickly markets resettle, the lower the impact on the housing market is likely to be. However, any prolonged disturbance would inevitably impact the housing market.”