I have been interested to read recently a number of reports in relation to Brexit and the housing market. Firstly I would advise that at ground level I have not noticed any residential transactions being postponed because of the imminent EU Referendum. This is very much against my experience of the Scottish Referendum where I noticed a number of transactions being postponed or cancelled. I am sure that at a higher level, in particular in relation to businesses that export to Europe, investment plans or property expansion plans are being put on hold or postponed until after the Referendum.
So what if we vote to leave? In my opinion and from the various readings that I have done on the subject I believe that if we vote to leave the EU there will be a sharp jolt throughout the whole economy in particular the banking section. This will not only impact on general market confidence and settlement but I do suspect this will lead to a limiting of mortgages, a potential increase in interest rates and a knock on effect to the economy as a whole and the housing market in particular. Whether you are in favour or against Brexit, I don’t think anyone can deny the potential impact on the housing market – at least in the short term.
Partner – Head of Property