BREXIT - What does this mean for the property market?
June 2016
What does Brexit mean for the local property market?
So, it has finally happened, we are on our way out of the EU. It is quite a shock to everyone, both leave and remain, but how will it affect the property market and prices in our area?
In recent times when there has been uncertainty and the pound has decreased in value, overseas investors have taken advantage and invested even more in property in Central London looking for long term gains. This has a knock on effect in the surrounding areas keeping prices buoyant.
After the referendum result was announced the Governor of The Bank of England, Mark Carney, was quick to reassure the markets that he would do what it takes to carry the UK economy through this destabilising process. Markets and currency react well to a central bank saying it will do all it takes to stabilise and reassure an economy.
With this prompt response and the strong possibility of an interest rate cut, plus the ever increasing chance of more quantitative easing should there be signs of investment slowing, this should help boost confidence in the property market in the coming months.
This intervention will have a further detrimental effect on savers and make them look to the property market again for long term investment. This investment along with excellent local schools, great transport links into Central London and supply and demand will help keep the property market in our area stable.
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