BREXIT - Property Must Be A Good Bet

It is very early days to predict what affect Brexit will have on the housing market.  I write this in early July just one week after the result.  As a firm I would say the affect so far is somewhat less than I would have expected.  We have had several transactions fallen through but we carry out hundreds or thousands of transactions and so the dropout rate is not so far enormously significant.  I would say a lot of people are playing a wait and see game.  My speculation is that the market for people buying and selling houses to live in will be less affected than the investment market where people may think they will be able to buy a property more cheaply in a years’ time and therefore pull out of acquisitions.  There is no doubt there are less memos of sale landing on our desks at the moment but that may well pick up again.  Crucial is whether there is any tightening up on lending because of Brexit.  Thus far I only know of the big bank from Singapore pulling back from lending in London – otherwise mortgage offers seem to be landing on our desks here as usual.  All in all, the hope is there may be something of a slowdown and perhaps a slow reduction in values but transaction rates will remain healthy and the market will continue to function.  After all people still need to move house and there is no change to the underlying fact that there are not enough houses in this country and so investment in property must be a good bet.

Bruce Scobie
Director and Solicitor
TEL: 01749 836104

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