Big and current property news!
Theresa May has triggered Article 50, which means big changes are on the way now Brexit has kick-started.
Two years of negotiation will follow this move and the economic impact that comes with it is uncertain among many. Britain’s real estate market will also depend on the speed and success of deals and policies made.
The vote to leave the EU has had huge implications on the housing market already, causing house price growth to slow and transaction numbers have fallen, especially in the London area.
However, industry professionals are predicting that this will change once the negotiations are underway.
On the other hand, homebuyers are not so convinced that the market growth will pick itself back up. 43% of Londoners believe that UK house prices will rise only once the country completely leaves the EU; this is research from YouGov, commissioned by Equifax.
Below find some property expert predictions. What is the forecast for the future?
- The property market will be stabilised
As every new landmark is ticked off the Brexit timeline – and the activating of Article 50 is a big one – the property market gets another increase of stability, encouraging people to move on and settle down.
- Number of house sales will rise across the country
The triggering of Article 50 should come as a sigh of relief to the residential property market, as the Government finally provides certainty that its plan for leaving the EU cannot be derailed. The UK property market is really reliant on confidence – something evident through transaction levels that have been suffering since the Brexit vote.
- Interest rates won’t upsurge
It may well make the Bank of England unwilling to raise interest rates, despite the recent increase in inflation. This will preserve affordability and points to a low turnover market, with small fluctuation in pressure.
- Property price progress will be slow
The expectation, pre-referendum, that house prices would collapse was very wide of the mark. House prices are still rising across the UK and continue to grow in London, which is arguably more delicate to Brexit.
- Londoners are likely to be the most careful
Caution is likely to be highest in London, given the extent to which house prices have risen relative to earnings in the capital in the past 10 years. It means home buying represents a bigger financial commitment relative to the rest of the country against a framework of uncertainty.
- Prime central London property will remain reasonably unaffected
With all events like this, a few buyers and investors may sit back and watch to see if anything changes, but the smart investors will continue to invest in central London, especially overseas buyers making the most of the weakened pound and the discounts this provides.
- International buyers will invest in the major central property market
We feel that the impact has already touched us and the exit has weakened the pound. This has fuelled the demand from overseas investors and buyers.
Written by Gemma Smith
Source for information for this current property news (forecast predictions Homes and Property)