Last week judges ruled that before the government can invoke Article 50, the clause in the EU constitution that allows a member state to leave the Union, it must consult Parliament. Causing a furious reaction in some quarters and jubilant sighs of relief in others, the ruling was controversial. The question many are now asking is ‘What does this mean for the UK and what does it mean for the economy?’
The ruling did not come as a huge surprise to many who have read the particular section of the British constitution and law that dictates the sovereignty of Parliament. It is a positive step that means the government must now, pending appeal, reveal their strategy to MP’s in order to have it scrutinised. On the face of it this is a positive move as MPs will now be able to table amendments to the legislation meaning that the government’s seemingly favoured ‘hard Brexit’ stance has little chance of success. Access to the European market is likely to be a key battle fought between government and MPs as it is seen by a majority as key to prosperity for British businesses.
Theresa May has accepted the high court judgment on Brexit, though the government is planning to appeal the decision. Some in Westminster believe the high court decision has made the prospect of an early general election more likely by increasing the risk that the Prime Minister will be unable to manage the tensions within her own party.
The currency markets responded positively to the court judgement with GBP hitting a one-week high of 89.135 pounds to the euro following the decision which also saw sterling rise by 1 per cent against the US dollar, the biggest increase since August. One pound was trading above 1.24 dollars immediately after the ruling.
Property prices and performances also continued to go from strength to strength following the court ruling, reflecting the underlying security of the market. Residential house prices continue to grow as the market struggles to provide enough stock to meet demand. Living costs are likely to increase steadily as inflation rises, further increasing demand for private rental property. Rental yields remain very strong and off-plan property investment is still proving to be fertile ground for investors.
Regardless of the ruling in the High Court, the property investment market is doing very well despite the ups and downs which have come with Brexit so far.