Photo Caption: Jason Williams, Director Mallard Chartered Surveyors
As a nation we may have thought that June’s referendum would have put an end to all references to the term ‘Brexit’ but the word has never been mentioned more in the headlines. After the EU referendum garnered a leave result, many industry experts are asking what’s next for the UK, and so too is leading chartered surveyor and estate agent Mallard Properties.
“Despite the Leave campaign, it is safe to say that the majority of the public never believed that a Brexit would result! Almost immediately after the shock outcome was announced the period of uncertainty predicted by the Remain campaign began and business at a local level, particularly in the property sector, became very quiet,” said Jason Williams, Director and Royal Institution of Chartered Surveyors (RICS) member.
This period of uncertainty affected every aspect of the UK economy as we knew it, including interest rates, which the Bank of England has vowed to cut if necessary. As soon as the result was announced and the stock markets plummeted Governor Mark Carney made it clear that the Bank of England was well positioned to take whatever action was required to protect the UK. Chancellor George Osborne also pledged a corporation tax reduction to protect businesses and attract investment, cutting the tax from 20% to under 15% to successfully cushion the UK business world.
Post-Brexit, issues created by housing stock shortages and the over inflated rental market became even more apparent, however, as Jason puts it ‘seasonal coincidence’ definitely has a part to play.
Jason explains, “Summer is always a quiet period for the property market, and outside of this the opinion is that sector wide the situation will stabilise come Autumn. The stock market itself is recovering well and whilst not back to its pre-Brexit best, the pound is steading whilst government bond yields hold their near record lows. Whilst Sterling is indeed still down, it is still good currency for exports and business, and will evidently stabilise once the strategy for Brexit becomes clearer.”
The Brexit however caused political unrest that many did not expect, and whilst events are now settling, they did have the potential to temporarily hinder market conditions – that’s without mentioning Nigel Farage’s departure from UKIP, and Scotland and Ireland’s stance on life outside of the EU.
“Whilst they should be offering strong opposition, Labour is still in disarray with Jeremy Corbyn’s lack of support from his own MPs recently evolving into Angela Eagle mounting a leadership challenge. The Tories on the other hand have provided a united front behind new Prime Minister Theresa May. However, this recent appointment has led to a step up in pressure from German leaders in regards to the commencement of negotiations with Europe. With clarity now on the horizon, things will stabilise, and the country and economy locally and nationally will be able to move forward,” concluded Jason.