The dawn of 24th June 2016 brought about the news that the British public had voted to leave the EU. Whilst there have been reports that this has resulted in nervous buyers pulling out of purchases and commentators forecasting reduced property prices and a reduction of around 20% in the volume of available properties in the market, the natural question for many to ask is, "What happens next for the local property market?"
The simple answer in this case is that nobody really knows for sure.
Initial market activity in the local area appears to have remained steady with transactions proceeding, offers being received on properties in a variety of price brackets and some new instructions coming to the market. There will, of course, be those who are more hesitant with the uncertainty that faces us over the coming weeks and months and who may be more inclined to stay put rather than entering into the buying and selling process. Our latest property auction, that took place on the day the referendum result was announced, proved successful with some lots achieving higher than the guide price and providing a great result for our clients.
It is also reasonable to assume that first-time buyers will be anxious to understand the impact on interest rates and their ability to secure a mortgage – again, there are no guarantees as to how either of these factors will be affected.
Landlords will also be cautious of the impact on lending rates, which in turn could have an impact on rents. But again, this is purely speculative at this stage.
If you have a property on the market at the moment, don’t panic! There are still a wealth of buyers looking for their next home and that could be yours. Ensure that your agent has a plan in place should the market slow down and/or prices drop and do everything you can to maximise the appeal of your property to viewers in the meantime.
If you have any property-related concerns over the referendum result that you would like to discuss, whether you are our client or are currently with another agent, please feel free to contact your local office for a no-obligation, informal chat.