In or out? What does the EU Referendum mean for the UK property market?
There has been much speculation recently as to what leaving the EU would mean for the UK property market. At this point, it’s predictably unclear what the impact will be, but here are a few predictions. UK residents looking to buy or sell in the UK are likely to remain relatively unaffected, however it is possible that in the current period of uncertainty leading up to the vote, some buyers and sellers may hold off and await developments, which could potentially slow down the property market in the interim. It is expected that an exit from the EU might create barriers for UK residents looking to make foreign investment and buy property in Europe. It is uncertain at this point as to whether additional processes or regulations will be brought into effect, however having a good estate agent and lawyer negotiating on your behalf is likely to address any potential barriers. Global investment is an area which is expected to be impacted the most, with reticence about investing in the UK property market until a decision has been made. According to a survey by KPMG, 66 per cent of real estate experts believe that “leaving the EU would have a negative impact on inbound cross-border investment”, therefore viewing the UK as a safe haven for investment could take a turn. One area of concern is housebuilding and whether the so-called housing crisis could be escalated if developers are hesitant to invest in building projects in the period of uncertainty. The National Association for Estate Agents reported that demand for housing was the highest level for 12 years in February 2016, with an average 463 house hunters registered per member branch. If the rate of house building is impacted, this could in turn have social implications and drive up house prices even further. Should the UK decide to leave the EU, a number of new regulations will be brought in, which could take up to two years for the government to negotiate following the exit. However, with it being the first time a country has proposed plans to vote to exit the EU, we’re very much in a period of uncertainty and cannot be clear on what impact it will have on the UK property market. For UK residents looking to buy or sell their property, it’s as good a time as any, and our Sales Team is on hand to discuss any queries or concerns you might have. If you’re looking to move home, come in and see us or contact 0113 237 0000.
Published on: 26 Aug 2021