It has been less than a month since Britain’s surprise decision to leave the E.U., and what a roller-coaster ride it has been.
Make no mistake; this is just the start of a story that will take many years to unfold. The new British Prime Minister, Theresa May has said she will not invoke Article 50 of the E.U. Treaty, which starts a two-year process of withdrawal, until 2017.The outgoing Foreign Secretary Philip Hammond warned that it could take up to six years to complete the departure from the E.U.
In a nutshell, I believe that in the short term, uncertainty is likely to discourage some domestic buyers while the weaker pound and low interest rates will encourage more foreign buy-to-let buyers to enter the market. In the long term, the outlook for the housing market will be determined by economic fundamentals.
As Brexit is only just starting to take effect, my view on the outlook for London buy-to lets will undoubtedly evolve as concrete changes are made. I believe the Brexit factors that will shape the UK housing market fall into three main areas – POLITICAL, ECONOMIC and FINANCIAL. I will continue to track developments in these areas with interest. To continue reading click here…