With Brexit officially in motion as Theresa May triggered Article 50 last month, has the property market seen any impact? What does the future hold as we break away from Europe?
Some property experts believe that this should usher in a period of stability for the industry. As plans become finalised and there is less uncertainty, people will become less cautious about buying and selling homes. And with this increased confidence, the number of house sales should rise. Transaction levels have been falling since the Brexit vote. As the Financial Times states “The referendum result appears to have contributed to a fall in the number of people moving home”. Taking action over the decision should reverse the decline.
There is also the view that the fall in transactions is mainly linked to London and the influence of overseas property buyers. Where house sales are more commonly linked to needs, jobs and family, there has not been as much of a change. However a possible rise in inflation or interest rates will affect what people choose to do with their homes.
House prices may not rise in parallel with forecast growth in transactions. They are still increasing, but growth is slow. Demand, and a lack of housing supply, means that the value of homes continues to rise in most areas. However, house prices can be affected by the UK’s economic performance. If confidence increases, house rises will boom, but the negotiations related to Britain’s exit from the EU will have implications for the financial market and industry confidence.
However, there is still extremely high demand for homes across the UK, which of course affects prices. The Government still needs to fulfill their pledges for more housing, more affordable housing and better entry level points and schemes for first time buyers.
How do you think Brexit will affect the property industry? Let us know your views