Despite the fact that a potential 'Brexit'—a portmanteau of 'Britain' and 'exit,' referring to a push for Britain to leave the European Union—could lead to a dip in Britain's housing market, the lower rental yields that could come out of this could give more young Aussies the confidence to move to London.
"There's no doubt that a large chunk of most expats' pay goes on rent and living expenses and anything that's going to lower those costs would be a good thing, especially when it comes to bumping up the travel budget," said former UK expat Alexandra Foley.
Xavier Wiggins, director of Europe for Inventorist, said that the potential drop in house prices should Brexit push through could result in more foreign buyers.
"My feeling, and the consensus, is that staying feels secure and thus gives some confidence to the economy, and leaving breeds uncertainty and wobbles," he said. "One argument is that an exit would lead to lower prices and weaker sterling which, in turn, could mean more foreign buyers."
However, Brexit is only one of the contributing factors that are currently influencing the UK house prices.
"If house prices decrease this would be good, in the short term, for rental yields which probably won't catch up immediately with house price drops," Wiggins said. "Affordability is still a massive issue in the UK, so even with government solutions like Help to Buy, we have more and more renters, as people just can't get on the property ladder."
But in spite of the positive effects on the rental market, Foley believes that the consequences of a Brexit far outweigh its benefits.
"Sure, lower rents are great, but part of the magic of living in London is that it has a truly multicultural society and I don't believe for a second that lowering these costs is a good enough reason to support Brexit," she said.
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