Uncertainty a concern for the UK property market
A recent online financial report looked at UK Estate Agents ahead of the EU referendum, US broker Citi is mentioned as being cautious on UK estate agents ahead of the referendum next month, they gave Foxtons a target price of 140p, repeated a buy on LSL Property and neutral on Countrywide.
George Osborne has stated house prices will fall significantly if Britain votes to leave the European Union. He said on TV last weekend “It’s already clear from the Treasury analysis that for example, there would a significant shock to the housing market, that would hit the value of people’s homes, that would hit the cost of mortgages”.
Politicians, businesses and industry experts opinions are largely hypothetical at present. No one really knows for sure how a Brexit would affect the UK economy, more especially the property market.
It is in the shorter term, the uncertainty of not knowing whether we will be “in” or “out” that is the biggest cause for concern, as far as property investment goes most will be holding back until the result is known, this may well see activity in the property market decline short term, property prices may come off further in the next month because of it, after that much will depend on the vote on the 23rd June.
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