UK Relocation: Brexit and the UK Property Market
Our latest issue of Cartus UK MarketWatch looks at the immediate impact the Leave vote has had on both the residential sales and rental markets, providing important information for those managing UK-based assignments.
Most housing reports published since the referendum state that it is too early to identify any definite trends caused directly by the Brexit result. Some experts point to the influence that buyers will have in the coming months, indicating that they may continue as before, or they may begin to adopt a wait and see approach to assess what is happening to the financial markets and the economy.
London and Brexit
Whilst at an overall national level the impact of the vote on the housing market is yet to be determined, the market in London and the south east has slowed in recent months. This may be attributed to potential buyers and sellers waiting to see what will happen to the economy, and the London market having to adjust to lower sales activity and lower investor demand.
Will Stamp Duty Increase Skew Reports?
A Stamp Duty increase on 1 April 2016, for second and subsequent homes led to a surge in market activity ahead of the tax rise. This increase in property completions has made it difficult to measure the pace of demand in the lead-up to the referendum, and assess the impact the result has had on property transactions since. So, if there is currently a dip in property completions, it’s uncertain whether it’s because of the UK voting to leave the EU, or buyers bringing their home purchases forward to avoid April’s Stamp Duty increase.
Are UK Rentals Impacted?
In general, it is anticipated that the referendum will have minimal impact on the UK rental market in the first few years following the vote. Beyond this, demand levels could begin to fall, especially in London’s rental market, although it is too early to be certain at this stage.
Corporate Relocation Advice
If you’re involved in UK mobility, be sure to keep up to date with information from leading news sources as the negotiations for the UK’s exit from the EU begin. This is particularly important to ensure all aspects of relocation planning are covered comprehensively. As details of the terms of the UK's exit become clearer, Cartus will publish further information on the impact to your global mobility programmes. For a more detailed review of the UK sales and rental markets, please read the Cartus UK Market Watch.