29th June 2016Show all News
In light of all of the recent political debates and of course the shock result of the announced Brexit, questions are being raised about the property market as its constant unpredictable state seems even more allusive.
Over recent years, we’ve all watched the property market gradually climb back out of the slump of the 2006 crash, while the Government worked hard to introduce first time buyer schemes to support first time buyers whose rents continued to rise. This has caused a gradual, and steady increase to house prices across the Country, breathing new life into the market and giving the younger generation a chance to get a foothold onto the ever moving property ladder.
The first stumbling block to the market appeared in the form of the very recent Stamp Tax Duty changes, which slammed investors in April 2016. The new law was launched promptly, but lawyers and solicitors in the property sector were only provided the complex law details a mere two weeks before the launch, providing little time for queries to be raised. This has left the investor sector of the market to descend into chaos as many investors have been charged too much, or even paid a hefty fee when no charge should have applied at all. With this putting investors off as they scramble to find a loophole, the first road block to the market increase was established.
With the Brexit a stone throw away from being confirmed as the negotiations commence, the question on everyone’s lips is what happens to the property market from here.
The Government originally made a pledge to create one million new properties by 2020, however with construction based jobs becoming less popular among UK nationals, and as 1 in 20 (5%) current construction workers were born in non-UK EU countries, these are even more important than ever, to fill the skills gap and boost the housing stock available. While the impact the Brexit will have on the migration polices remains unconfirmed, this could pose greater restrictions on foreign workers coming into the UK and may compromise the UK’s ability to build homes.
Meanwhile, in the immediate aftermath of the Brexit, eMoov an online agent, reported an extremely busy weekend with over 50% increase in the number of potential investors from Europe and Middle Eastern Countries looking to take advantage of the favourable exchange rate.
There are two sides of the coin with predications and statistics being announced which contradict one another. On one side you are being told that house prices will rocket dramatically as the supply falls due to the migration restrictions causing a negative impact on the work force and demand increasing by the ever searching first time buyers and oversea investors snapping up properties. On the other hand, others are saying that the gradual restoration of the pound value will see off foreign investors in due course, allowing first time buyers to have some breathing room to get their foot on the ladder, and while we aren’t due to leave the EU for another 2 years, the progress being made to supply will not cease for some time.
So alas, we suppose that there is no other way to summarise except but say that time will tell in due course. Either way, we’d love to hear your thoughts.
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