What a crazy last 10 days it has been since the EU referendum held in the United Kingdom. Since the public voted to leave the European Union, we’ve had two political parties in meltdown, a serious threat of the UK being broken up and England losing to Iceland to go out of the football!
The first 24 hours were quite panicky. Prospective buyers were trying to pull out of deals. The annoying tactic of gazundering was rearing its ugly head. In some cases, we heard of some silly numbers being banded around with buyers demanding the vendor drop the price by 30% due to Brexit. In most cases, the buyer pulled out but the vendor found another buyer relatively quickly.
The phrase on everyone’s lips now is article 50. As of the 23rd of June, nobody had ever heard of that but now we have the whole country deciding when we should activate article 50. Even my hairdresser thinks we should “do it yesterday!” He is, obviously, really keen to leave the EU.
But this is when we think the public will start noticing a much more sluggish property market. It will be much more marked than it is now, with a lot more property sticking on the market for longer. Some analysts argue that the slow down has begun, but it really is far too early to tell.
Those of you living in London will have seen the hard hitting headline in the Evening Standard. Is this self fulfilling prophecy about to become reality?
In moments like this, if you may be a vendor that wants to sell because of Brexit. We think you should take a deep breath and calm down. The world hasn’t collapsed – not yet anyway – and there are too many buyers right now for you to lose out.
If you still want to sell your property quickly to a cash buyer, then we are still in the market. We promise not to do any naughty gazundering and will be fair with our offer to you. Don’t hesitate to call us – remember that article 50 can be enacted at any moment ;-).
Update: 1st of July / Results are in from the EU referendum – Brexit it is!
Another day, another doom mongering announcement from one side the other about the British In or Out referendum.
What are you going to do come the 23rd of June 2016? The general consensus amongst many landlords is to take the chance to leave the European Union and vote Brexit.
From a informal poll we ran amongst our landlord and investor group, 60% of landlords will be voting to leave the European Union, with 30% on the Remain side with another 10% undecided.
None of the above reflect what we at NW Homebuyers will be voting for or against, but we thought we’d let our clients know that there is a tendency amongst most landlords to want to leave.
Whichever way you vote, remember to actually turn up and vote. Our only input into this debate is to ignore the fluff, scaremongering from both sides and take all the hyperbole with a pinch of salt. We’ll find out in the morning after whether we are Europeans or not!
The short and most honest answer is: We have absolutely no idea!
A more thoughtful answer would be to say that in the event of an ‘In’ result, then we don’t think there will be any negative movements and could be a positive result for housebuilding companies in the UK.
Should we opt to go with ‘Out’ and leave the European Union, then the immediate effect may be visible. The reason behind this that uncertainty of any kind gives the market a wobble, whether that is property or stocks. Uncertainty of any kind doesn’t pacify the markets and there is no denying that in the immediate aftermath of an Out result isn’t going to be good for property investors in the UK.
What it might do for speculators and those that play arbitrage is a different question. If you have the liquidity to play the markets, then there could be some strong gains to be made. Conversely, there will be some strong losers too in such an uncertain and unstable market!