What does the Brexit mean to the property industry?
We keep reading the ‘Brexit’ headlines, seeing images of David Cameron coming in and out of meetings, and before the referendum in June we have all promised ourselves we will look in to the advantages and disadvantages of leaving the EU. As a landlord and managing agent we have helped break down what the ‘Brexit’ means for the property industry.
In order to analyse a Brexit effect on the housing market, we would need to look at the economy as a whole. The general speculation seems that Britain leaving the EU would have a negative impact on investment and people may hold off on buying and selling property until the referendum takes place.
Chris Cummings, chief executive officer of TheCityUK, said that “While Brexit might not be ruinous to our economy it would most likely lead to a loss of jobs and faltering economic growth.”
But with main hub of investment (and therefore risk) in Central London, what does that mean for Wales? We have seen similar patterns in the property market when Scotland had their referendum and when we are nearing a General Election, people like to see what the outcome is before they make such significant decisions such as purchasing property. So we may find a drop in properties on the market leading up to the vote.
Bishop’s Move says “Home movers are putting their plans on hold until after the EU referendum in June. Only 20% said the referendum would make no difference to their plans.”
There is no doubt that the London property market would be hit the hardest, but having said that the impact would creep into other areas of Britain. Equally, if Britain didn’t have some of the EU regulations, we could attract more investments and therefore the property market could surge. It seems a Brexit would be more unfavourable to those in Britain who wish to purchase property in Europe, especially with the immigration crisis, we can predict at this stage that it would be harder to purchase property out of the UK, with additional visa and money checks coming in to play.
However, many question the benefits of leaving the EU, will it increase house prices? If we potentially make it harder to invest in the UK then how will the property market continue to grow?
After taking everything into consideration, the Brexit is going to have an effect on the property industry before it even takes place. It would seem that a Brexit would have a stronger impact of Briton’s trying purchase property out of the UK than those overseas trying to purchase property in the UK, with even less impact the further you are away from London. This could mean that the property industry may not falter and the property market will remain uninterrupted should the public vote out of the EU, however, it is hard to not to think about a UK without the ease of overseas investors.
If you wish to discuss your property or future investments before and after the Brexit, please feel free to contact us and speak with one of our team on 029 20489000 to register your interest.
Published: March 14, 2016BACK TO NEWS LIST