Brexit And Euro
Date Published 24 November 2016
Novahomes
An Expert View
Will the Pound Effect Your Ground?
Lee Whitelaw, Company Owner at Novahomes says:
"There is no pundit in the UK who has missed a step when talking about the Brexit vote. Now with recent activity in the pound against the dollar, the supply giant Unilever, and the concern over what this means when article 50 is triggered in 2017 it's no surprise so many of our clients are asking:
"How will this effect my house value?"
In September we had results in from the Nationwide House Price index showing an increase in housing nationally by 0.3%, which has bolstered the RICS (Royal Institute of Charter Surveyors) House Price Index to suggest a rise of around 3.3% per year over the next five years. This was again replicated in October 2016.
Locally in the South Devon and East Cornwall area we had a turbulent time directly following Brexit with the vast majority of sellers holding their nerve and seeing a flood of buyers (who quickly recovered from their knee jerk reactions) return to the market with an appetite to buy!
This has resulted in one of the busiest summer sales periods in recent years, and a good degree of confidence return to the market.
Currency fluctuations are always a worrying thing, especially when the government have now confirmed a roadmap for our EU exit and as a result we have seen suppliers of goods in the EU try to turn the heat on before the ingredients of the meal have even been finalised!
Thankfully, in great British tradition, our shopkeepers lead the fight for our future rather than our politicians and a milestone has been created about how our national infrastructure will be approaching the negotiations. Cut us a fair deal or we will cut you out of our huge market!
The world remains uncertain with the recent US election news, making markets nervous and the continuing growing instability in the currency markets.
But what about your own piece of land?
Well here at Novahomes we have seen a strong level of confidence among most buyers and sellers about house prices, with only a small number actually claiming to be concerned about where the price of their property will be long term.
With the market moving forward slowly, and that slow growth allowing confidence to catch up to reality means any fall in house prices, even following such shocking events as the last few days and the last few months have also been slow, and once the dust has settled the recovery has followed. The market is making changes more like an oil tanker rather than a speed boat, so by the time the tide has turned from one new change to another, the course has only had time to alter by the smallest of levels much to the merriment of home sellers in Plymouth and the surrounding area.
The country and market appears to be learning to take Brexit in its stride now and with inflation looking like it will be increasing beyond previous estimates this house price growth in the short term is likely to slow a little but the overall confidence will help ensure a solid base for the 2016/2017 housing market.
As more information on our exit from the EU emerges there will be worrying times ahead for many business' but as the details also start to flow on the exact nature of the new relationship with the EU each sector in the UK has a new opportunity and therefore a new chance for growth and that includes the housing market.
If you would like to talk to someone about your possible house sale please call myself or one of our dedicated experts on 01752 206040"
