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UK needs ‘swift and decisive’ action post-EU referendum – Esurv

by: Richard Sexton, director, Esurv
  • 09/06/2016
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UK needs ‘swift and decisive’ action post-EU referendum – Esurv
It’s been talked about for decades, but we are finally just weeks away from a referendum to determine whether or not the UK should remain part of the European Union.

If you exclude the Scottish Independence debate in 2014 , the referendum is perhaps the first of truly national importance that has been experienced by many voters during their voting lifetime.

Politics aside, whatever the outcome, there are likely to be impacts on both the housing and mortgage markets. Mortgage lenders have remained largely silent on their preferences for the results, but the Chancellor (a firm ‘remain’ advocate) has been more bold, suggesting that a Brexit will generate financial instability which in turn would push mortgage rates up. The counterpoint to this, is the view of analysts collected by Reuters and others who say that the Monetary Policy Committee will reduce rates to counter any instability.

While we know that any movement in interest rates tends to stimulate remortgage activity in the short term, the impact on affordability could become a bigger concern in the longer term. From a housing perspective, the great British housebuyer hates uncertainty. They will want a swift and decisive outcome, followed by objective analysis of the impact of the result, either way.

The London market, with its particular exposure to offshore investors, will be even more interested in the final result.

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