Articles From the Team
The impact of Article 50 in property
March 2017 was another monumental month in British history as Theresa May triggered Article 50. Since our controversial vote to leave the EU, there has been a lot of speculation regarding what an EU departure would look like for the UK housing market.
I have to say, it has been quite an interesting time in recruitment. Immediately following the vote last June, the vast majority of the property sector pushed the panic button, expecting a slump in property price and transactions. However we were all pleasantly impressed to see that it wasn’t the case, in fact the market and house prices have slowly increased despite the uncertainty. According to Halifax House Price Index, prices rose 6.5% year on year in 2016.
However now negotiations are underway, we are all sat wondering what the future will hold.
A recent article I read stated that actually, now that we know where we stand, the market is likely to become more stable. Purchasers and Sellers akin feel that we just need to get on with life regardless of where we sit in the world (i.e. a lone island or part of the EU) and as such sellers are demanding higher prices and purchasers are paying it. It has also been considered that BREXIT may mean that the Bank of England is reluctant to increase interest rates which will assist with affordability and increase stability.
Whilst most property experts believe that price growth will be slow, particularly in London there is an upside. The pound has decreased in value which has increased demand from international buyers and as such has kept the market moving. So in essence, whilst the pound will buy us less Sangria in Spain this summer, it will hopefully encourage foreign investors to continue to spend money in one of the world’s oldest economies.
All this is great to know but the big questions is should you still be building your conveyancing teams / looking for a new job or should you continue with caution?
Honestly, my answer is live your life!!! We have been busy at BCL despite the market’s uncertainty. In fact, the North West conveyancing team has had a sterling month and as one of the first industries to be affected by political an economic changes, this should fill you all with confidence. Don’t be shy to ask us what we think and what we have witnessed so far and don’t be afraid to live your life in full. As George Michael once said…. “You gotta have Faith, Faith, Faith…”
For more information contact BCL Legal.