We have all experienced the ever changing property market when it is influenced by circumstances or external events over which we have little or no control. Brexit, whichever way it goes, will be no different. It is not necessarily the leaving or the manner of the exit, it is the impact it has on confidence. A hard or soft Brexit or even a no deal will have different impacts. Even now some folk are saying, why should I buy now – if I wait 6 months I could save myself thousands. As with all of these changes in the market place, one thing will remain constant and that is that it is all relative. The other thing is that here in Norfolk, we have a lot to shout about being proud of. We have a strong and diverse economy; interest rates remain stubbornly low; the local economy is structured around some dynamic business sectors; The Norfolk Coast and Broads continue to increase in popularity; the Broadland Northway has opened up the north of Norwich to massive new development.
The Norfolk Property market has often been likened with the effects of a ripple in a pond emanating out from London. It may take time to get to us and by the time it does it will have weakened and the worst of it may well be over. The UK property markets tends to be made up of micro markets and each area will experience the impact, good or bad, differently. On the positive side, money is still cheap to borrow, unemployment is down and certainly as far as our area is concerned crime and anti-social behaviour is low making this a popular place for many to live and relocate to. Markets operate on sentiment and the current sentiment is one of the unknown because of the Brexit uncertainty, it follows on that it is entirely possible that following the 29 March that the market will again perform with normal characteristics… business as normal!
There are plenty who have opinions on the subject but no one will truly know what impact Brexit or a no deal Brexit will have on the property market until it happens. In the meantime there is a lot of conjecture.
We are a very diverse property firm and some sectors may experience a slowdown in activity as we draw closer to the date that we leave the EU, but probably short lived. The impact is less likely to be felt in areas such as lettings as the sums of money involved are not as great and the sentiments behind a tenancy tend to be practical rather than emotive. In addition a slow down in activity in the housing market with any possible ramifications that has on prices, could be beneficial to the buy to let market and indeed we are continuing to have conversations with new landlords coming into this sector. In our discussions with clients we should remain as positive and upbeat as possible.
As a firm we must make use of every opportunity that comes our way and use our diversity and expertise, in a wide range of property sectors, to our advantage.
If you are confused by the all the 'deal/no deal' lingo then please click the link to read a pretty wholesome overview from RICS. BREXIT EXPLAINED