Property market predicts ongoing uncertainty as Brexit sinks in

As the property and lending industries absorb the result and looks to move forward, chief executive of the Association of Short Term Lenders (ASTL), Benson Hersch, said uncertainty in the market is set to continue for some time.

“I believe that much of the result represents a protest vote against the establishment, including both major political parties,” said Hersch.

“Clearly, many people feel disenfranchised and left out.”

“Economically, whatever the truth of the pre-vote alarmism, there will be a prolonged period of uncertainty ahead – this is not what markets want.”

Hersch predicted sporadic fluctuations in currency and share pricing.

“Brexit may well help the upper-level property market, especially as foreigners seize the chance to buy at more advantageous exchange rates.  On the other hand, economic uncertainty could inhibit price rises in the mainstream market,” he said.

Meanwhile, Melanie Leech, chief executive of the British Property Federation, said market turbulence was already being experienced as the value of the pound fell.

“It is now clear that there will be political changes ahead, but we will continue to work in partnership with government and other stakeholders so that the real estate industry, which is a considerable contributor to UK GDP, can continue to support the economy and create great places,” said Leech.

“The negotiation process is going to be long and complicated, and there will be many unknowns ahead. Our priority is that the government maintains focus on existing national priorities such as housing and that it makes decisions on major infrastructure projects, such as airport capacity and maintaining momentum around HS2, swiftly.”

The vote was split 51.9% – 48.1% in favour of a Brexit.