Property Post Brexit
Many believed ahead of the EU referendum a vote to exit could have an adverse impact on property markets. Given that Brexit is about to turn into a reality, it has transferred into fear amongst many who have an interest in property, and that might make the forecasted negativity a self-fulfilling prophecy. But is Brexit actually a reason to be concerned should you have money in property, or is there really little to be worried about?
Reports in the news report that people who sold property prior to the referendum result are pleased they did, as they’ve witnessed falling prices prices following the referendum. However, if you’re somebody that wishes to reinvest your cash in property, the doubt in the marketplace may very well be putting you off.
However, a study through the Bank of England demonstrates that, even though the property market experienced a fall in activity after the vote, purchases have gone in opposition to expectations and shown to be resilient. However, a study from the Royal Institute of Chartered Surveyors has stated that both investor demand and belief have fallen considerably following the referendum, and that has had a unfavorable effect on commercial property. Even though the typical UK house price grew by 8.1% this year to May 2016, there is no ONS information on the average house price trends following the referendum since this isn’t going to be published until September.
6 commercial property funds also have halted trading since 23rdJune 23rd, which means many thousands of investors are currently unable to access their money. The Aberdeen Property Trust wiped out 17% in value at the start of July in order to deter investors from removing funds. Whilst these moves are attributed partially to the doubt generated by the pending Brexit, other challenges including the rigidity of the work place market in London are suggested as contributing factors.
Whilst there’s little doubt that we’re now in a time in which the property market has lots of big question marks around which way it is going to go, it’s essential to remember that the wider monetary world and British life generally has encountered significant changes since the referendum result. It’s reasonable that there’s uncertainty in these times, but it’s essential that any concern you’re experiencing does not result in rash choices regarding property investments.