After the U.K.’s shocking vote to leave the European Union, many experts speculated on what it would do to the economy, however now Britain’s housing market seems to be business as usual, according to an article by Tara Evans and Richard Dyson for The Telegraph.
The Brexit vote caused some buyers to pull out, however the majority of the contracts went through, according to the article.
From the article:
Many housing commentators are surprisingly upbeat.
Jeremy Leaf, a former chairman of the Royal Institution of Chartered Surveyors and north London estate agent, said the “Brexit bombshell” came when prices were already slowing, especially in London, following the increase in stamp duty at the beginning of April.
This perception of an existing slowdown meant the market was “more resilient than we might have expected”, he said.
There was “a determination on the part of most customers to get back as close to normality as possible.”
Paul Smith, chief executive officer of Haart estate agents, said that the vast majority of buyers were now continuing with their purchases.
He said: “About a week after the decision, we’re starting to see the market settle and confidence returning.”
“The result has had no impact on website traffic or applicant figures, in fact the outcome may be resulting in opportunist buyers taking advantage of the situation by snapping up bargains caused by the uncertainty.”
This seems to support the argument that the Brexit vote may not cause as dramatic of an effect as some people think, and will even take years before going into effect, as Andrew Kenningham Capital Economics senior global economist stated.
The economy may even see benefits such as loosening monetary conditions.
However, as Bloomberg reports, all is not well in the UK property market as four funds are now freezing withdrawals.
