Brexit is here: What now for the UK property market?
SevenCapital Director Andy Foote comments:
“Brexit will happen at 11pm tonight (31st January). The UK and the world will be waiting with bated breath for the clock to strike. Die hard Brexiteers will be preparing to celebrate the beginning of a new dawn and what happens from here, which, let’s be honest, no one is quite sure of yet.
“What has become increasingly apparent, thankfully, is that there appears to be an emphasis from all parties that good relations should be upheld and strengthened. This is certainly encouraging and likely to cast a few positive tides of certainty and optimism across the country as the negotiations start and transition begins.
“The question for the property market, and indeed crucially the financial markets, is will we see a post-Brexit bounce?
“We’ve already seen the pound surge and both activity and prices within the property market boosted overnight on the result of a strong election win – no doubt partly on a promise to ‘Get Brexit Done’ (or, at least get something done with Brexit). Will we see this again as a knock-on effect of officially leaving the EU?
“Many an expert has predicted this is highly likely. Whilst the actions on January 31st are really just a technical formality for Brexit, marking the beginning of the transition period, it signifies a definitive move towards the future for Britain and its relations with the EU. With the general consensus appearing to be a desire to make Brexit work, we can likely expect an uplift and return to ‘business as usual’ – in comparison to a more hesitant marketplace over previous months.
“How long this uplift will continue however will hinge on the next steps within the transition period. It is perhaps the summit in June where Britain and the EU will come together to review progress of negotiations so far and whether all deals will be reached in time to begin on January 1st 2021, which will be most telling of all.
“We watch this space in anticipation.
“In the meantime, what is apparent and is important to take note of, particularly for property investors and buyers wondering whether to buy now or wait, is that whilst we’re in this period of uncertainty, house prices are still growing – however slow they might seem. This is the market simply saying it wants to move, but “let’s just hang fire for a moment whilst we find out what is happening”; It’s potentially an opportunity for the less risk averse to invest or buy before the bounce and wait for the market to return to higher growth again.”