The UK’s exit from the European Union – also known as ‘Brexit’ – has already had a significant impact on Britain on a national and global scale. Industries that have based their organisations in the country are beginning to worry about the impact that the nation’s eventual exit will have on their companies, and individuals are increasingly concerned about post-Brexit Britain struggling in the years that will follow. One market that is bracing itself for rapid change is the UK property market, one that has been heavily invested in by international buyers over the last few decades. So, what might happen after March 2019?
Estate agent Savills has estimated that the purchase of British properties may drop by around 16% within the year, but also predict that house prices will increase over the next few years, which is excellent news for British property owners and sellers in the longer term. Some pundits have also suggested that, with fewer immigrants from Europe renting properties, the government could ease general uncertainty by abolishing the stamp duty tax. Many view the tax as a strain on the market, which actively decreases the competitive nature of the market. With an abolishing of the tax, more homes could be sold, allowing for the property market to thrive during a time of relative economic uncertainty.
Commercial properties are flourishing
Moreover, commercial properties are continuing to prosper in this ever-changing market, with offices, shop spaces and other corporate rental areas are still bringing in money, putting a positive spin on a relatively unsure future for the UK. Many have also noted that, without the constraints of European property laws, the UK property might flourish once again, as it might invite the possibility of increased internal investment by British business and individuals.
So, what can we expect?
Brexit will have long-term effects on the UK economy that even the most capable economists will struggle to predict so far away, but we can begin to see some positive emerging trends coming out of the property market. We must remember that the UK economy has been consistently growing since the 2008 recession, and though some austerity legislation is still in place, Britain is still seen as a valuable place to invest, with property being a hot investment opportunity for many. So far, the Brexit negotiations have had little impact on the market overall, and though this democratic change might leave Britain looking at an uncertain future, that is not always a recipe for economic disaster.