BREXIT, The Property Market & The Future

I have been giving serious amounts of thought to what BREXIT would mean for the property market over the last few weeks and months, and now all thought is directed to what it will mean in the property market.

I certainly do not have a crystal ball but I do take note of certain key market factors.  One thing that has not changed is that Britain still does not have enough residential property, as supply is constrained by other factors such as planning rules, schools shortages and so on.  At the same time interest rates are low meaning that mortgages are still relatively cheap and we must not forget that whilst property generally has faced a few peaks and troughs over time, it is overall a resilient asset class.  Developers are still continuing to build, the country still has a lot of capital invested in property and whilst the volume of transactions may drop a little, I think that this was already the case to a certain extent in the lead up to the BREXIT vote.  It may well be different for the property market in London; which is already seen as being a very high and potentially unsustainable market, although the value of sterling, if that remains, would potentially attract investors to continue to purchase.

Transactions will continue to take place, families will continue to grow, workers will move location and youngsters will fly the nest.  These are things that drive a property market and whilst stability may seem unlikely bearing in mind the myriad of opinions out there, the property market in the North West is perhaps a little more shielded from big shocks than that of the more global markets of London and the South.

One thing that I am certain of is that the UK now has another favourite subject to discuss alongside the weather; and what the future implications of this historic day will be.