Recent problems with the EU from the recession, most notably with countries hard hit like Greece, concerns are turning to the United Kingdom’s own position. If we did leave the European Union in the forthcoming referendum then what might be the consequences for the overall Untied Kingdom housing market?
There are so many concerns arising if we left with long-term projections being more to do with speculation. But as was evident in the past, when the property market stalled, there is nothing that raises concerns & questions being asked than that of uncertainty. As we near the decision whether to stay or to leave, one would expect buyers and sellers alike to keep their cool over this situation & to wait for further, concrete, resolute developments.
The impact of a Britain leaving the property market would depend upon its impact on the economy as a whole. A survey earlier this year by accountants KPMG found that 66 per cent of real estate experts believed that ‘Britain leaving the EU would have a negative impact on inbound cross-border investment’.
The central world renowned London property market would be hit the hardest, with foreign investors, that of which London is most known for, being alarmed. However the impact would not be purely confined to just in the capital, there would be a widespread denominator with cities such as Birmingham & Manchester feeling the impact. Also if the UK suddenly exited from EU regulations then the property market would benefit.
Before any large event that could dramatically affect our economy, there will always be many arguments at present in regards to the property market in order to sway votes. This creates an air of uncertainty among both buyers and sellers and as such makes everyone a bit more cautious. We saw this recently with the General Election, with a quieter period in terms of transactions in the lead up to the vote, and so we anticipate a similar effect in the lead up to Referendum. Having said that the UK and London in particular have always drawn outside foreign investment, not only from Europe but much further afield from Asia & beyond, and I would expect this to continue whatever the outcome, especially as people come for many reasons including education and the lifestyle that London attracts.”
Britains exit could also have a knock-on effect on property prices if going by expectations immigration from Europe begines to fall. However, the reverse is also likely to be true for mainland Europe. There may be implications for UK buyers looking in mainland Europe if we exit the EU. Following an exit if extra rules were introduced for British buyers such as visa or money checks, which seems likely, then the process could become more difficult. However, as with the UK, investment by overseas buyers has always been more than welcome and as such we can’t foresee any stipulations being too problematic. Instead it’s likely that those looking to buy will just need to make sure they can confidently negotiate the process, which a good estate agent and lawyer with experience in these real estate markets which we recommend.”
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