Wed 06 Mar 2019
This month, the UK will complete its march towards Brexit: unless Theresa May calls an about-face we will be leaving the European Union on the 29th.
If you have been paying any attention to the news at all, you will no doubt have seen numerous reports and articles predicting impending doom, especially for the housing market, as we are still without a deal approved by Parliament.
However, these forecasts are still yet to be realised, and instead there a parade of positive signs in the market. Employment is at a record high of over 75%, and while economic growth was only 0.2% for the last quarter, this is certainly at least a half-step in the right direction.
Consequently, transaction levels are on the increase and prices are now predicted to rise by between 1-2% nationwide in 2019. The latest Conveyancing Market Tracker run by Search Acumen reports that top-rank firms ran more files for transactions in the last quarter of 2018 than in any three-month period since before the referendum.
Of course, all this progress could come to a halt at the end of this month. However, this seems unlikely. In the short-term after the 29th, we are likely to witness a spike in activity, as many buyers and sellers are waiting for the uncertainty to clear before entering the market.
The market won’t rest after this. Once the uncertainty of Brexit is over, transaction levels may return to pre-referendum levels. After all, people will always need to move home, so homeowners will continue to buy and sell, keeping the wheel turning.
Investors, too, will continue to contribute towards the market’s recovery. A survey conducted by Censuswide showed that many investors believe the market to be “good to very strong” and an army of them will continue to invest in property here after we leave the EU. For these individuals, the cost of buying property has been reduced by the fall in the value of the pound, for many outweighing the increases in taxes on buy-to-let landlords.
Whatever happens on 29th March, you should still be at ease, as the property market is always active, and good agents will continue to achieve successes for their clients.