The UK is reeling from the shock result of the EU referendum, as David Cameron has resigned his position as Prime Minister.
With the pound quickly plummeting to its lowest levels since 1985 and shares also nose-diving, fears are growing around the housing market.
Britain’s booming housing market is expected to see a slowdown, according to a number of housing experts.
Richard Donnell, director at property specialists Hometrack, observed, ‘the near term prospects for the UK housing market now look very uncertain. The immediate impact is likely to be a fall in housing turnover and a rapid deceleration in house price growth as buyers adopt a wait and see the short term impact on financial markets and the economy at large.’
‘History shows that external shocks can reduce sales volumes by as much as 5 per cent to 10 per cent nationally and 20 per cent in London with sales volumes in the capital already down over the last year,’ he added.
Howard Archer, chief economist at IHS, suggests a fall in value of 5% in the last half of the year and a further 5% fall early in the new year.
In a bid to calm the market, Bank of England’s Governor Mark Carney tried to reassure investors by pledging to, ‘not hesitate to take any additional measures required.’
Buying agent Henry Pryor also noted that, ‘no market likes uncertainty, the housing market least of all. We now have uncertainty with a capital U and buyers-the party that decides what a property is worth-will now be sitting on their hands wondering at what level they should commit.’
What should I do?
As an existing or potential investor, you will undoubtedly be questioning when and if to buy or sell a property. Experts are urging property investors such as yourselves to focus on long-term property goals.
Jeremy Leaf, a north London estate agent, observed, ‘in the medium to longer term, the underlying strength of our economy will drive activity and investment.’
‘The UK and particularly London property markets are long-established and sophisticated so have always attracted investment and should return to some form of normality, whatever that means now, after an initial period of indecision. It’s now up to the politicians to keep the changeover and time for reflection as short as possible although we may anticipate waiting up to two years before more major economic decisions are taken,’ he added.
On this momentous day, uncertainty is rife. What is clear though, is that you should make the right choice-and take out landlord insurance with Just Landlords!