Brexit: What will it mean for the property market?17 June 2016
We are still none the wiser on what will happen come 23 June. Whether we will stay or whether we will go. The same can be said whether there would be any impact on the property market.
In our previous blog, Europe: Should we stay or should we go? we highlighted that, from history, during any pre-election period, the property market stalls, and nothing scares it more than uncertainty.
A report from the Royal Institute of Chartered Surveyors showed 80% of its members believed that the uncertainty has held back investment. Combined with high UK property values, this has built up demand ready to react. However, this uncertainty, from experience opens up other opportunities and for one, the rental market is still strong.
A recent article in The Telegraph states foreign property investors are lining up to buy up property should the UK vote in favour of an exit. It says there would be a sharp drop in the value of the pound which will make assets cheaper for overseas buyers. This of course is rather ironic given the emphasis of the leave campaign which is against any foreign influence.
However, the article also states, that any exit would follow a two year period of real uncertainty whilst the government and businesses renegotiate trade agreements. It also forecasts that property companies will have to close offices due job losses and research shows this fear is genuine.
With the vote being only a week away, it is evident the the expert talk has not changed much since we last wrote on the EU referendum. One thing is for certain though, where there may be a problem, there will certainly be an opportunity.