What is expected to happen to the UK property market as a result of Brexit?

Following a long-running debate, the UK has voted in favour of a Brexit.

In the coming weeks you will hear a variety of opinions about what is expected to happen to the UK property market as a result of Brexit.

On the sales side, it is understandable that clients who have not yet exchanged contracts, and even those who have exchanged may be having second thoughts. The same can be said for those thinking of buying and selling. However, once they have come to terms with the new political environment in the UK, most will realise that very little has changed: they will be working in the same job in the immediate future, they will need somewhere to live and the world will keep spinning.

From our side, we believe the London sales market will remain strong once the Brexit dust has settled, particularly in East London which has seen excellent growth in the recent years. It is constantly evolving and becoming more desirable whilst demand for homes consistently outstrips supply. At this stage, there have been no signs of adverse moves in terms of mortgage interest rates and it does not appear that the Bank of England will be increasing the base rate in the immediate future. Furthermore, the recent fall in sterling may well encourage further overseas investment.

We expect the lettings market to be very buoyant in the coming months as a proportion of potential buyers historically transfer to renting in the initial period after a major economic or political change. The area continues to be full of young professionals who aren’t yet in a position to buy a property but require a desirable place to live which offers easy access to Shoreditch, The City and beyond.

Having said the above, there is no doubt we are entering into an unknown period in the history of the UK. With this in mind, we will keep you updated on a regular basis once we have facts and not just opinion to work with. If you have any questions on the impact of Brexit on buying, selling, renting or letting a property and how it may affect your future plans then please do get in touch.