Brexit will long be remembered for the arguments, the lies, debates and the many false promises; paradoxically this was just the actions and behaviour between Ministers of the UK Government and MEP’s.
Do those that voted ‘leave’ now regret it? It has become clear that the decision to leave may well have serious financial and economic consequences, but did anyone forecast such political mayhem, change and confusion?
It’s true that many buyers and vendors put off making key decisions in the lead up to the vote in June and whilst the full effects of the EU exit have not yet been realised, this current period of stability gives the feeling of being in the eye of the storm as we wait for them to hit. There are still vital deadlines to meet such as the start of school terms and aspirations for people to downsize or up-size that we expect to negate some of this hesitation.
For the optimistic, positive and forward thinking, let’s get on with the exit and make the best of it! We now need to rebuild confidence and stability. The UK is still a safe haven for property buyers and whilst in the short term the pound has weakened, this will affect the International buyers more than the domestic, home markets.
Is SDLT having a direct and adverse affect on the residential property market?
There is no doubt that changes to Stamp Duty Land Tax have had an enormous affect on the property market at all levels and has spooked many property buyers. We all understand the decision was taken to avoid a Mansion Tax levy that would have hit the south-east and of course the Capital very hard, but would it have been better for the property market as a whole than increasing Stamp Duty across the board?
In addition, from April of this year, a 3% surcharge on second homes and buy-to-let has hindered this market too - a double whammy. We believe however, that the market will fine-tune over time.
Whilst Mrs May and her new Government go about the country’s exit strategy from the EU, any slowdown in UK economic growth, and the possibility of rising unemployment will have an effect on the housing market; these factors affect household incomes as well as sentiment.
As one of the leading independent property buying and acquisition companies we can impartially comment that the property market remains buoyant with a healthy stock of properties that are both privately, quietly available and houses that are being openly marketed. There are fewer retained clients than say 5 years ago, but for the committed buyer who is in a position to transact, there are some splendid properties to choose from and some serious deals to be had.
The next few months will be fascinating, interesting and we hope somewhat stable following the past 6 months. We anticipate that the residential property market will pick up and recover but will it ever be considered ‘normal’ again?