RICS registered valuer Alex Woodward considers the impact of Brexit on property valuation.
Most financial decisions made by individuals or organisations in relation to property transactions are underpinned by valuation.
More than just a figure determining the market value of an asset at the end of a report, valuation can affect the level of borrowing that can be secured against an asset, influence investment decisions and inform on the viability of development schemes.
So, when there is potential for the wider economic and political conditions to exert their influence, there is accordingly a need to try and predict what effects such events may have on the property market.
While valuation is only ever at a point in time and, as such, cannot be guaranteed looking forwards, events such as Brexit have the potential to considerably influence the market.
Most importantly, drawn out political negotiations and extended timescales to effect an exit from Europe are unlikely to ease market uncertainty.
On the plus side, as an active valuation department, we are not seeing the current level of instructions from various lenders reduce.
So, for now, it is ‘business as usual’ and long may it continue!
Brexit update 21st November 2018
With the recent publication of the draft Brexit Deal, the UK is set to leave the EU on 29th March 2019 with or without a deal. Brexit day would be followed by a 21 month transition, during which further trade talks would take place. If no deal is met during this timeframe, the transition phase could be extended which could potentially inhibit certainty and stablise market conditions. There are still significant political hurdles to overcome however not least of which is the Parliament votes on the deal.
Alex Woodward BSc (Hons) Dip Surv MRICS
RICS Registered Valuer