The Effect Of Brexit On The Property Market

When the unexpected Brexit result came though, there were ramifications in the wider economy and the property market. However is all the media hype to be believed? Listen in to property consultant Alex Goldstein give his years of insight in to the the effect of brexit on the property market and picks out what one should be mindful of…

The Effect of Brexit on the Property Market

Full transcript below:

Alex: This month we are discussing the outcome of Brexit and to put the record straight. Now come on, let’s face it when we heard the UK was leaving the EU what happened? Panic set in. Whilst one half of the UK were revelling in their success the other half were going into meltdown. The stock exchange was all over the place, sterling fell off a cliff, political resignation went around like wildfire and let’s face it the doom-mongers had a field day. People then started buying into this psychological panic about the economy and they actually lost sight of what was going on. What we’ve got to remember is that leaving the EU is not an on/off switch type scenario. From the point the UK government invokes article 50, there are 2 years from that point of detailed renegotiations. So, in other words it’s going to be 2019 before we know the full extent of the detail. The key to all of this whether you are Brexit or Bremain is mindset. By staying positive and keeping calm you will start to see the new economic and property landscape in a brand-new light. Now, mortgage lending rates, they are at an all time low and money’s never been cheaper to borrow. So therefore, if you’re thinking of moving home you can go up a couple of rungs on the ladder. The Bank of England have held the interest rates at half a percent, however there’s talk that that’s possibly going to come down. Again, good news if you’re borrowing. Supply and demand are kings when it comes to property. In Yorkshire supply’s always been weak but demand very high and this has led to prices holding firm in comparison to other parts of the country. So therefore, if you’re a homeowner looking to sell, demand remains good and as long as your guide price remains realistic there are answers out there for you as well. Investing and buying in property has rarely been about short term flipping, so therefore any changes in the house price index is likely to balance out over the length of ownership. That is why property has always historically proven to be the best investment over the medium to long term. International investors have also plagued on the current exchange rates and are increasingly keen to buy. So, the actual conclusion of Brexit is way down the line and everything in the media currently is on the most part, educated speculation. So, after all no country has ever been in this position before. What we do know is that the UK and the EU wants a clean break on the best terms for both sides. We need them and vice versa. So, when you look at the world in a positive frame of mind keep calm and always take a medium view point, the outlook is not so bad after all. Yes, of course there is some current short-term turbulence but that’s not a surprise, we knew this was going to be the case anyway. Here’s a parting thought for you, will we actually leave the EU in the end? Either way, all the white noise about going in, staying out, meeting in the middle, it’s all talk. Am I going to put my life on hold for a minimum of the next 2 years? No, of course I’m not and I suggest you may wish to do the same.