The referendum was one of the greatest shows the UK has had for some time with the worlds spotlight on us. With almost a week since the much hyped referendum it would be fair to say most people were surprised at the result.
With the resignation of the Prime minister and the delayed action of implementing Article 50 we are still firm members of the EU. Some are petitioning for a second referendum, however both the EU and the British government have confirmed the mandate.
Until Article 50 is passed by parliament the leaving process negotiations cannot begin. This will not happen until we have a new Prime Minister and a negotiating team is put into place.
Through this period of uncertainty, it would be fair to say that many markets have bounced back after losing value post result. Realistically it will take around 2 years post ratification of Article 50 for us to leave the EU and it is at that point our markets can see what leaving would mean for them.
There is plenty of speculation about what the Brexit means for the housing market but it is just that. The Independent commented that mortgages may become more expensive and that London would be one of the hardest hit with its level of foreign investment. The Times takes the same kind of stand with foreign investment potentially down and the period of uncertainty may make people sit tight and not make any property related decisions until the market regains confidence. However, a week after the result there has been reports that we may see a reduction in the base of England base rate that may result in even cheaper mortgages/finance being available to the public.
As we know, the UK currently is in a situation where we can always do with more properties being built. To the degree that we require approximately 200/300 thousand new houses built per year in order to meet with the demand of prospective buyers. The Brexit has not directly affected this need. With credit becoming easier for buyers it’s further fueling demand for properties.
It’s the uncertainty of course may make markets fluctuate a little, but as with many national and political issues people still buy and sell homes and products as life has to go on.
Locally, during the first week after the result we have seen a steady flow of valuation requests and properties coming to market, as well as sales and completions continuing to happen on a daily basis.
Our Relationship Manager Chris Plummer as well as looking after you and overseeing the sale of your property is also a fully qualified and licenced practising mortgage broker so has insight into both the availability of credit for mortgages while also can view the activity on the market. Here’s a short video explaining the role of a Relationship Manager: