What does the Brexit result actually mean for British Property. Well the simple answer is that nobody can predict what will happen to the UK housing market in the short to medium term. Until the markets settle the future is unlikely to be certain.
One thing is for certain though, buyer confidence has been hit hard in the short term and this is evident in the collapse in share prices of some UK housebuilder property stocks. However, in the long term the fundemental attractions of UK property are likely to prevail and continue to attract glabal investment. Indeed the devaluation of the £pound is drawing in overseas investors, which is making up for a fall in demand domestically.
Most anaylists take the view that there will be no dramatic changes in the short term. House growth may be small but wont necessarily reverse. It really affects the mainstream property market, where we’ve seen a softening of prices and a slowdown in transaction volumes. London is bearing the brunt of the slowdown with less affordable housing. However, property developers are still in it for the long term and we are still seeing high levels of commercial development lending.