Post-Brexit effects should be more certain by September
With an unsure future, experts look to a leading estate agency’s research to gain a better outlook for the country’s housing market.
For almost two months, property selling experts have been trying to estimate the knock-on effects from the EU referendum at the end of June. Many have postulated that the likely outcome will be a recession, similar to the one felt in 2008 thanks to over-lending by banks. Others, meanwhile, believe we may suffer a small recession – but that the economy will remain relatively unscathed in the long run. But ultimately, it is a fair assumption that no one knows for sure how the country will fare in the post-Brexit world.
New research released by prominent London-based estate agency Knight Frank, however, indicates that the fate of the housing market will be much easier to gauge once September comes around. While property prices have fallen steadily since the build-up to the 23 June vote, with July being the fourth successive month of dwindling prices, many estate agents have started to see a slight uptick in business in the first half of August so far.
Liam Bailey, global head of research at Knight Frank, has notified clients that ‘September will be a pivotal month’ for the industry, as an indication as to whether the wider housing market will be negatively affected by this ongoing period of turmoil.
“Recent PMI data reflected the reality that the UK is going to experience a bumpy ride over the next few quarters,” said Mr Bailey.
“That said, the outlook seems less tumultuous than was initially expected. While a recession for the UK seems a real possibility, what appears less likely is an economic crisis, as was being suggested in the days following the referendum.”
With many vendors looking for a quick house sale in the final quarter of the year, the advice is relatively plain – until the direction of the industry is clearer, it is best to hold off on placing a home on the market. Of course, some people cannot afford that luxury and need to sell sooner, but luckily they can still deal directly with property buying companies who are willing to buy any home for cash, in a much speedier process that the traditional estate agency route.