Following the British parliament’s decision to allow Prime Minister Theresa May to trigger Article 50, we take a look at how this landmark decision will affect the UK housing market.
Despite the media's constant attempts to allot a different advantage to the two groups, both home and foreign investors will currently be facing the same levels of uncertainty.
Whilst many experts have pointed their finger to the pound, which continues to dip and rise as a possible cause for concern, the investment bubble is unlikely to burst. There will always be opportunities to invest in property, and Brexit or no Brexit, people will always need a home.
However, uncertainty can make for skittish customers, and several British sectors are suffering due to this. In an attempt to combat the effect, the government has promised a quick turnaround when it comes to their white papers. They hope that once the details for Brexit are widely understood, much of the uncertainty will be dispelled.
Very little has actually changed for the property market in terms of the two main factors that govern its condition; too much demand and not enough supply. When the results for Brexit were first announced, many experts were quick to claim that there would be some initial instability.
Spicerhaart’s Chief Executive Paul Smith was one of many that claimed the UK’s property market will see long term stability, he stated “In the short-term, things could be turbulent as people come to terms with a result that wasn’t expected. But we now have some certainty. House prices may go up and down as they always have, but demand pressures will sustain prices over the long-term. We’re on course to see the greatest investment since the war, and residential property continue to pay off for home owners.”
The property market has been largely untouched by the effects of Brexit. House prices have continued to rise and the supply continues to be outstripped by demand, until Article 50 is officially triggered by the government, and the terms of Theresa May’s Brexit are understood more widely, we won’t know what effect the process will have on the UK’s housing market.