The whole Brexit debate started back in 2016, where a public referendum was held in order to decide whether or not the UK should remain in the EU. Voting took place on Thursday 23 June and more than 30 million placed their votes. In the end leave won by 52% to 48%. Brexit was originally supposed to occur on March 29, 2019, two years after Theresa may triggered article 50 – the formal process to leave the EU – however the UK still remain in the EU.
Under Theresa May, the Brexit deadline was delayed twice after MP’s rejected her Brexit deal and on June 7, 2019, she resigned from her position as Prime Minister. On July 23, 2019, Boris Johnson was named as May’s successor in the hope of guiding the UK out of the EU. Despite negotiating a new revised deal with the EU, Johnson missed the latest deadline of October 31st and was forced to request yet another extension – pushing the deadline back to January 31, 2020, however the deadline is a flexible deadline meaning that the UK could leave the EU before then. After failing to gain the necessary support on his recent Brexit deal, Johnson called for a general election in the hope of breaking the Brexit stalemate. The next general election will take place on December 12, 2019.
It’s clear to see there is an immense amount of uncertainty surrounding Brexit, but what affect has it had on the property market? Despite all of the uncertainty house prices continue to increase, with Halifax reporting that in the last year house prices rose by 1.1%. It is hard to predict what affect Brexit will have on the property market due to uncertainty of what kind of Brexit will occur – deal or no deal. Accountancy firm KPMG have predicted that a whilst a no deal Brexit could see house prices slightly drop, they are likely to only fall by around 6-7%. In the event of leaving with a deal with the EU, it is unlikely that there will be a housing market crash.
The resolution of Brexit will come as a relief to everyone, especially property investors. A large surge of property investment is expected following the resolution of Brexit. Experience Invest found that around 55% of UK property investors have paused any investment plans over the last six months as they await the outcome of Brexit and it’s estimated that 52% of investors are monitoring properties they are looking to purchase, waiting to see if there is any price fluctuation as Brexit approaches.
Since Brexit was voted for back in 2016 it has been clouded in uncertainty and controversy, and despite all of this UK property market remains strong, with prices holding firm throughout and even steadily risen in a number of areas. The expected influx of invest of investment following the conclusion makes for an exciting time in the UK property market. Are you interested in investing? Click here to see our property investment opportunities.