The Impact of Brexit on the UK property market

There’s talk of the referendum everywhere with mixed viewpoints around the country about whether it is best for the UK to stay or leave the European Union. There are questions surrounding what the consequences would be for both outcomes and none more so than the impact of exiting the EU on the property market.

What has become apparent, especially in recent weeks is that in the run up to the election the property market has somewhat stalled as uncertainty surrounding what could happen means that both buyers and sellers choose to bide their time.

Many people are of the opinion that if Britain were to vote to leave it would have a negative impact on the economy and this would ultimately have a negative impact on the property market. KPMG found in a survey earlier in 2016 that amongst the majority of real estate experts (66%) the consensus was that exiting would damage “inbound cross border investment”

Whilst it is likely that central London would feel the impact the most of exiting the EU – it would not be isolated and the ramifications, especially for the housing market are likely to be felt across the country. With the new stamp duty hike for second homes and buy to lets, this additional uncertainty has done nothing to help the UK property market.

The UK has a lot to offer residents from countries further afield than Europe so there is no reason for this not to continue. The UK lifestyle and education system have big appeal from overseas so whilst there could be a lull Europe wide until an outcome is reached there is likely to still be activity from other non EU locations.

For the most part the future is unknown – there could be a drop in property prices if immigration from Europe goes down. UK residents looking to exit the country themselves could have implications if the UK does not remain in the EU but all this is simply speculation at this point.

Whether investing, buying or selling, having access to a savvy real estate agent could be key to negotiating these uncertain times. Developing relationships now in order to get help after the result is announced could help sellers massively, especially if the UK finds itself in unknown territory out of the EU.

As the future of the UK is so uncertain then preparation is the only real course of action. Planning for either scenario or simply bracing for the results whilst connecting with a property expert could be the best way to sit it out.