Ever since Article 50 was officially triggered, there has been lots of speculation as to how this will affect various parts of the UK’s economy. While there are plenty of negative opinions out there, there are also many property experts chiming in with their belief that the UK housing market is going to be just fine, and may even begin to prosper now that we know Article 50 has been triggered.
Removal of Uncertainty a Big Boost for UK Housing Market
For example, the Director of Regional Sales for the Portico estate agents, Mark Lawrinson, believes the recent triggering of Article 50 could be just what the UK housing market needed to rid itself of the uncertainty surrounding Britain’s exit from the European Union. Mr Lawrinson did also warn that the negotiations need to go well, saying, “We will see a continued slowdown or lethargic London market when it comes to sales volumes, and as we reported toward the end of last year, transaction volumes across London are already more than half of what they were before the 2008 crash.”
He continued, “If Brexit negotiations go well this could cause further price growth as the economy grows. But if a good deal isn’t reached then the international companies who operate here or look to relocate here might change their minds, reducing the number of residents who live in the capital and again further reducing the transaction levels, which could ultimately lead to price decreases.”
UK Housing Market One of the ‘Most Resilient in the World’
The Chief Executive Officer of one of the UK’s leading online estate agents, eMoov, had his own positive words to say about the triggering of Article 50. He believes that the increasing demand for properties around the UK will ultimately help the UK housing market endure whatever uncertainty arises from the Brexit negotiations over the next two years.
“The London market remains impervious and, with such a shortage of stock, the overwhelming level of housing demand will plug any gaps of depleted buyer interest from further afield. Despite the high levels of uncertainty in the market, property values have continued to show signs of positive growth in 2017 and this will only strengthen as time goes on. Brexangst around leaving the EU has caused uncertainty in the market but the cooling rate of price growth over the end of last year has without a doubt been influenced more by the increases to stamp duty and second home tax, with both playing considerable roles in impacting the market.
“With the initial Brexit fears now starting to subside and property values continuing to increase on both a monthly and annual basis, UK home owners should rest assured that the market remains one of the most resilient in the world.”