Registered valuer Alex Woodward provides a Brexit update.
Back in March, Brexit was expected to happen and nearly 3 months on that hasn’t happened with an extension period until the end of October 2019 for the UK to leave with or without a withdrawal agreement in place. There therefore continues to be significant uncertainty, with little reassurance evident to the public about what will happen.
However, so far we have seen little or no effect on the various commercial and residential property markets in Plymouth although there are occasional examples of Brexit being used as an excuse for renegotiation or other re-positioning requirements. In our view, the effects of a slow-down of the global economy are likely to have a more significant effect on the UK property markets.
The full extent of what transpires immediately prior to and post the Brexit date continues to be an unknown which creates an element of valuation uncertainty and will depend largely on whether a satisfactory deal can be reached or whether the UK leaves the EU with no deal. Residential agents are reporting a wait and see attitude and the RICS Commercial Property Market Survey suggests that investors’ and occupiers’ appetites have reduced with lower levels of enquiries reported which includes demand from overseas investors.
Buying a property should generally be regarded as a long-term investment and, even if there is a short-term price adjustment due to Brexit or other factors, house prices are likely to stabilise in the longer term future and mortgage rates remain favourable making borrowing more affordable and rental returns more attractive.
In the meantime, we have no choice but to wait and see and valuations will be caveated accordingly.
Alex Woodward BSc (Hons) Dip Surv MRICS
RICS Registered Valuer