"Would-be sellers will be more likely to stay put, and this morning’s collapse in the share price of Britain’s largest housebuilders hints at a freeze in new building."
Chris Schutrups, Managing Director of The Mortgage Hut, said that Britain leaving the EU could be detrimental to home owners and those looking to make their first step on the property ladder.
David Cameron and George Osborne warned voters in the run-up to the referendum that Brexit would increase mortgage rates because of rising inflation and interest on home loans.
Chris said: “After leaving the EU, we will see a drop in house prices. Although this will make homes more affordable in the short-term, in the longer-term it is likely to lead to a correction of the housing market as the biggest risk to the market is uncertainty and a lack of consumer confidence.
“Remaining in the EU would have been good news for those trying to get on the property ladder.”
Chris added that a number of national house builders are predicting that a reduction in the number of foreign workers will mean they may not have enough skilled workers to keep up with the demand of new housing.
Jonathan Hopper, managing director of the buying agents Garrington Property Finders, added that the uncertainty will "do little to unblock the supply shortage".
He said that "would-be sellers will be more likely to stay put, and this morning’s collapse in the share price of Britain’s largest housebuilders hints at a freeze in new building".
Hopper added: “In normal times constrained supply might drive up prices. But these are far from normal times, and a softening in prices is all but inevitable. The property market is likely to make a cry for help – and the new prime minister will face growing calls to reverse the stamp duty raises.
