Ever since the Brexit vote in June, we have been plagued with discussions on the potential impact of Brexit on life as we know it in the UK. A lot of stories we have been hearing have been nothing more than scaremongering. However, what is clear is that Brexit will have some impact on business and investment in general.
Many business owners use investment vehicles to manage and grow their wealth. A popular investment for centuries has been the property market. Here we discuss the likely impact on UK property following the Brexit vote.
When reviewing a UK property strategy, it’s always a good idea to start with London. The trends in London house prices tend to trickle through to the rest of the UK which is why looking at London houses prices can be a useful indicator of where the market will go.
In the years prior to the Brexit vote, the London property market had experienced huge growth resulting in many householders becoming property millionaires without doing anything. Following the Brexit vote, there has been a cooling down of the market. However, this was widely expected before Brexit as the economy was expected to shrink anyway. This cooling down of the market is not currently expected to be severe and property prices will always go up long term.
The same is true for the rest of the UK. Brexit speculation may have an impact on property prices and coupled with a possible recession, it would be wise to believe that property values may go down in value in some areas of the UK.
It’s too early to say what impact Brexit will actually have on the UK property market. What we can say for sure, is that there is currently uncertainty which can result in panic which in turn can force rash decisions. If property prices do plummet, then it will be a good time to buy property. If you already own property, a dip in prices should not force you to sell as property does better long term.
If you would like to discuss the possible impact of the recession on your business and property portfolio, please call us on 01902 42 2020 and we’ll guide you in the right direction. We’re professional chartered accountants and business advisors and have many years of business experience.
Alternatively, you may complete the contact form on our website by clicking here: I’m a business looking for some business advice from an accountant.
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Appleby Mall, Chartered Accountants, here to ensure your business achieves the success that it truly deserves regardless of the economic climate.