BREXIT. What Now?

 

Since Britain has decided to Brexit many have been asking what is the next for the market? Despite the uncertainty which we are experiencing as we come to terms with the consequences of leaving, the world will continue to recognise the strength of the British market. Many of the remain camp have watched the pound drop as the decision was announced and have forecasted an image of doom and gloom. But as the country adjusts we still will have a high demand for buyers/sellers Landlord/tenants.

 

From now until we leave the EU, we will witness a drastic increase in immigration into Britain from other European countries. This will benefit the construction industry which will have a positive effect on the private rental sector. Landlord Today states that "The dramatic drop in the value of the UK pound will alert many shrewd international property investors, with many buyers from Asia, as well as from the US, looking to take advantage of a more favourable exchange rate and snap up bricks and mortar in the UK."

 

On the morning of the results, David Cameron announced that he will step down as Prime Minister. In his moving speech he said "I would reassure those markets and investors that Britain's economy is fundamentally strong."

 

Many landlords will play the uncertainty surrounding Brexit to their advantage and will seize opportunities to get themselves a bargain. Following the recent changes in stamp duty and Brexit, lenders will be attracting landlords with their rates. Lettings may become more frequent as those who are still analysing the market decide to rent rather than buy. This may entice tenants to stay for longer than they anticipated as they wait for some clarity before buying their own property.

 

Russell Quirk, of eMoov, said: "Going forward the UK market will go from strength to strength, perhaps with wobbly knees at it emerges from the clutches of the EU, but it will soon find its feet again.

 

"There may be many buy-to-let landlords and second home owners rushing to list their property for sale in order to maximise their profit, before the 'Armageddon' on the horizon destabilises the pound. Ironically it will be these people flooding the market with additional stock that may see prices cool ever so slightly.

 

"However, property values increased by 6% over the course of 2015 and we predict the same rate of growth by the end of 2016."

Here at Wonderlease, we respect this democratic decision and believe it is important to not just process the EU referendum in terms of what we are experience at this moment in time. Beyond the haze of uncertainty are the fundamental facts that the UK is one of the largest and most sophisticated property markets in the world.

Published on 01 July 2016

Source Wonderlease

Written by Marc Cohen

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