Do you need to take notice of the Brexit headlines?
I am rarely reluctant to write about property but, as the big issue this week is Brexit, I feel obliged to say something, even though, in my view, hardly anything has changed since I last wrote about it in September.
To be honest, I think you can ignore a lot of the stuff you are reading. Many companies in the property industry seem to be putting out press releases on just about any tenuous link, just to get coverage. Unfortunately, this isn’t always spotted by journalists, so their claims get published and, as a result, their ‘bad behaviour’ is encouraged.
Here is a summary of my thoughts so far:
In a nutshell, some are predicting it will boost prices/rents, others are predicting it will hamper them. So no change there then!
From my perspective, you can forget what the punters say when it comes to ‘general impact’ as their advice is too generic.
In the past property prices (and rents) all used to rise in a pretty similar trend. London used to lead, it would spread to Home Counties and then out to the regions. Price falls tended to follow the same pattern.
However, we haven’t seen this trend since the credit crunch. Basically, prices – and, increasingly, rents, too – are very individual at the time of the transaction and it’s all based on supply and demand.
Prices/rents depend on supply and demand but also heavily on people’s confidence. That is typically driven by the economy so, as long as that continues to perform, people are likely to stay confident. Brexit may impact in some areas, but at a very localised level.
The best way to know what’s happening to prices or rents is to talk to local agent and monitor the information yourself, and to use sold property price data and compare to advertised prices, same with rents.
However, there are some things to be aware of:
My view is that you should do what’s right for you over the next 5-10 years, and don’t try to play the market. If you are an investor, it’s worth looking out this year for some bargains, just in the case the market does wobble with uncertainty and, just in case the economy does ‘go south’ as it did in 2007, it’s also worth checking you are better prepared for any issues it caused you at the time.
Some useful articles I did pick up to find out more about Brexit are:
If you do have any specific questions or worries, do let me know and as always, I’ll do my best to help.