For over a year there seems to have been endless talk surrounding the Brexit decision and its potential impact on the country and the property market has been no exception.
Article 50 has now been triggered by Prime Minister Theresa May and many are wondering how it could affect the value of their most valuable asset.
Many property experts believe that values will continue to rise despite Brexit, even if it is at a slower rate than usual.
Chief Economist for Nationwide, Robert Gardner offered his outlook on the market in 2017, stating that “Looking forward, house price prospects will depend crucially on developments in the wider economy, around which there is a larger degree of uncertainty than usual.”
Gardner also added, "But we continue to think a small gain (around 2%) is more likely than a decline over 2017 as a whole, since low interest rates are expected to help underpin demand while a shortage of homes on the market will continue to provide support for house prices."
There were concerns that the decision to leave the EU would have catastrophic effects on the housing market, however, the reality so far hasn’t been quite as drastic. After the vote in June of 2016, there were signs of a slowdown in activity, but in recent months many property experts and investors have been reporting a return to the norm.
CEO at eMoov, Russell Quirk, believes that it will be business as usual for UK property market, he said “Brexit has not managed to deter the UK property market. It’s bulletproof and teflon coated.
The only caveat is the prime London market that was overheated before and has been negatively affected by major Stamp Duty changes.”
Now that Article 50 has been triggered, the next stage is the impending negotiations and there are still plenty of questions around how all of it will play out, with some experts expecting to see no real change in the market until we have more concrete information.
Director of Residential Research at Savills, Lucian Cook, stated that “If the EU is open to constructive negotiations, the impact on sentiment will be limited to mild caution, whereas a more combative stance risks restricting activity to buyers and sellers who really need to move.”
A sentiment very much shared by Founder of Zoopla, Alex Chesterman, who also spoke on the potential effects, he said “Buying a home is one of the biggest and longest term decisions that people make so they tend to hold off making such important decisions in times of heightened uncertainty.
"2017 is unlikely to see any material improvement in sentiment until we have clarity around what Brexit actually means."
Whist no one is predicting the UK property market to crash due to leaving the EU, most are advising first time buyers and those looking to re-mortgage, to find a more long term fixed rate mortgage - ideally 5 years - to see you through the negotiations.
