How has the Referendum Result affected the Property Market
The housing industry is beginning to show signs of life post Brexit, and it's in actual fact in a stronger position than we previously anticipated. As you can imagine, there are those who believe that once everything has been finalised, there will likely be a recession and a house price crash as a result of being under great strain. That said, on the other side of the coin, there are those who forecast that the economy will boom, and that house prices will rise along with it. Let’s take a look at what some of the leading Estate agents are forecasting for this coming year.
Short term skepticism in the market has created a range of buying possibilities this year. Evans Randall Investors have remarked that there continues to be a huge longing to invest in the UK real estate, and buyers are acting swiftly to insure a far better deal. This has all been made a possibility as a result of instability in the political and economic areas. There have been a wide variety of homes under offer in some of the most desirable places in London such as in Chelsea and Belgravia which would under usual conditions are priced at hundreds of thousands of pounds. Studies show that the fall in Sterling is making UK real estate cheaper for overseas investors, and for those buying in US dollars are at this moment benefiting from a remarkable 10 per cent price reduction.
Estate agent, Ivy Gate has shed an interesting light explaining that house prices are remaining relatively stable due to supply shortage especially in London as buyers continue to compete for the best properties in the area. Their Chief Executive Officer firmly insists that our destiny is not determined by our membership to the European Union, he goes onto say that we have a dependable economy, with low inflation and interest rates. At the end of the day no matter what hurdles the property market will undoubtedly face, most of us need a roof over our heads.
Confidence has a monumental part to play in the current conditions, for those who voted to leave the EU, the result of the referendum will make them feel far a lot more optimistic in regards to their future, and much less anxious about the property market meaning prospective buyers will be a great deal less inclined to bargain so hard and prices will be much more robust. Head of property research at M&G Real Estate forecasts that in the long term the UK economy will return to normal, and the real estate market will reassert its intense position in global investment. Statistics clearly show that the everyday house price in London is still 474,000 GBP, more than two times the typical price of 217,000 GBP in the UK as a whole. The great news for first time renters is that Brexit may actually make it easier for them get on the ladder slightly quicker than predicted.
