Brexit and the property market
Whether you’re a Europhile or a Eurosceptic, or maybe just Eurconfused, we’ve done our best to work out what the consequences of the EU vote might be for estate agents, letting agents, and the wider property market.
Immigration
Immigration is, for many, what the EU referendum is all about. Control over our borders theoretically means fewer people entering the UK and therefore needing housing. This is likely to be welcomed in crowded places like London where housing is in short supply, but landlords who specialise in HMOs may start to struggle to fill them. A drop in housing demand will probably lead to a drop in house prices, which is rarely music to the ears of estate agents. It will, however, be great news for first time buyers.
A much lauded method of controlling immigration is the points based Australian system, where potential migrants are awarded points according to their skills. However despite their stringent immigration tests, Australia also has a housing crisis very similar to the one the UK is facing, showing that control over our borders and low house prices do not go hand in hand.
The construction industry have been benefiting from the free movement of people. Without the plentiful supply of cheap, skilled labour it would be even more difficult to build the number of homes we need. Ironically, this may not be a big problem because we might not need so many new houses to be built in the first place!
Finance
A negative impact on the financial services industry is almost inevitable. The majority of regulators within EU countries prefer their regulated entities to transact with other entities also regulated within the EU. Lots of non-EU banks and funds set up EU satellite offices in London for this reason. If the UK leaves the EU then these offices and their jobs will leave.
There’s no doubt that the finance sector in the UK will adapt, but exactly how that will happen, and what it means for ordinary homeowners who need a mortgage will remain a mystery until the event. Both house prices and the mobility of owner occupiers are very much dependent upon the mortgage market.
Uncertainty
Before potentially disruptive events, any interest in buying or selling property is almost always put on hold. Most estate agents saw a quiet spell before the general election in May, and Scottish agents saw the uncertainty deter house movers before the independence referendum. There’s likely to be a similar effect this time, with business returning as usual after the vote.
There is only one thing we know for certain about the EU referendum – and that’s that we know nothing. No member has ever voted to leave the EU before, and we have no way of knowing exactly how it would affect Britain, the property market, estate agents, or just those looking to move house.
Whichever way the vote goes, you can be assured that AgentPro will be on the ball, adapting to any changes in the property market to make sure your software is as efficient, and up to date as possible.
If you’d like a demo of our market leading software for estate and letting agents, call 08456 444 446 or contact us for more information.
