Business as usual after Brexit?
While we are still awaiting statistical documentation of the impact of the EU Referendum vote on the British property market, anecdotal evidence seems to suggest that the market has remain balanced since the vote. There will be some parts of the UK have experienced fewer or more sales than expected but on the whole, the impact on the UK appears to be negligible.
There are many factors that impact on the demand for property and two of these factors, people’s income and the cost of renting, have remained in place at a similar level. This means that even though many of us are trying to determine the ramifications of Brexit, the actual driving factors in the property market haven’t altered.
There are many reasons for people to move home
When it comes to the supply and demand of properties, many of the reasons people have for moving property are completely unrelated to Brexit. If people need a bigger size of property for their family, if they are looking to sell to be closer to loved ones or they just want a change, these emotions and needs are going to be in place regardless of the political landscape. It is important to remember that there are many different aspects that impact on the property market and it may be that the long-term future of the UK’s political presence in Europe isn’t one of the leading factors for many households across the country.
Of course, it would be wrong to say that there has been no impact on the market but across the country, it seems as though the impact has been balanced out. This can be seen in the different attitudes to the vote itself. Areas like Scotland and London were extremely pro-European whereas Wales, Cornwall and many areas of the north of England were extremely strong in their support of Britain leaving the EU. While we look at the UK as a whole, there is not one school of thought or opinions in the UK, which means that some people benefit from the perceived impact of Brexit and others will lose out.
The current climate is attractive to foreign investors
In the run-up to the EU Referendum, there may have been an argument that foreign investors were holding off from buying property in the UK. The level of uncertainty in the market at this time is always damaging and it may be that some investors didn’t want to commit to buying when they didn’t know the political landscape of the UK. Now, after the vote and even though there is a perception that the future of the UK will be less attractive to foreign investors, particularly from the EU, the state of the £ has created a situation where foreign investors are keen to buy. While there may be doubt about the future of immigration in the UK, the interaction of the £ and foreign currency means that foreign investors have been provided an excellent opportunity to make a great return on their money.
Some people in the UK have decided against buying property at the moment, however, they have been replaced by foreign investors who realise they have a genuine opportunity to invest wisely in the current climate. When you add in the fact that there is still a level of uncertainty in the market which means that many people, investors and developers are still waiting to see what happens, it is fair to say that the market hasn’t changed too much post Brexit. Whether this is the case in the long term remains to be seen, and there is still an opportunity for the market to be affected by how Britain’s future plays out. However, as there are so many different ways in which the UK property market can move and shift, it is no surprise to learn that there has been a balancing out effect on the property market.
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