Carney had said publicly that the chances of such a scenario were increasing and that it was an “uncomfortably high” likelihood, whilst also saying that it was “highly undesirable”. Then came comments from Liam Fox who placed the likelihood of a “no deal” scenario at “roughly 60-40”.
The rhetoric sent Sterling tumbling as currency experts saw investors selling off quickly and the currency now being repriced to take in the increasing risk of such a Brexit scenario.
This has sparked a large scale selloff in currency and sovereign debt that has left some investors seeking safe haven for their money. The suggestion this week is that UK property is likely to see an influx of investment into the market which could drive up prices, yields and rental growth. The sector has long been known as a growth market and the continuing predictions that more and more people will remain in rented accommodation for the long term will only reinforce this.
In terms of the property market as a whole, growth has been steady if unspectacular but the context to that growth should be understood in terms of the residential struggles of London, even as other areas of the South East around the capital city continue to flourish.
In the North West, North East, Yorkshire and the East Midlands prices have been growing steadily and healthily off the back of increased investment and a growth in migration from professionals and investors.
Off-plan property, in particular, has seen a flurry of activity recently with cities like Sheffield, Leeds and Manchester seeing notably high levels of construction activity, meaning plenty for investors seeking safer markets to get stuck into.
As the summer looks at drawing to a close within the next six weeks, the worries over Sterling show no signs of slowing and there’s little reason to suspect that the migration from currency to property will slow down either.
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