As people are coming to terms with the result of the Referendum and adjusting to a new reality of not being part of the EU, we are closely taking the pulse of the Scottish property market and we have some insights on current market trends to share with home owners and buyers who might be wondering what to do next.
It is still very early days to gauge the overall impact of BREXIT and there are still many uncertainties, with a potential new Independent Referendum and the many unknowns the new status of the UK within the EU will bring – but all in all, we at Clyde Property believe campaigners have painted a picture of doom and gloom that is simply not reflecting reality. The current property market in Scotland is stable and we see no signs of it slowing down.
Remain campaigners have been highlighting the potential threats of BREXIT to the property market but what we see right now is business as usual for the residential segment at this time of year, when many people are more motivated by a sunny holiday rather than the next big move. Seasonality has always been a part of this business, so there is absolutely nothing new there.
On top of seasonality, we must not ignore that this quarter comes after a record high beginning of the year – with many investors rushing to beat the new stamp duty tax that came in place on 1 April 2016. Markets across UK has seen levels of activity comparable to 2007 due to this rush, which of course cooled down once the new tax came into place. This unprecedented spike would have been hard to beat in any context and is not a direct consequence of BREXIT.
Residential property market has a basically simple mechanism that primarily depends on property demand, available supply and cost of money – and from that point of view Brexit has very little impact.
Currently buyers far surpass the number of sellers and can still afford mortgages that would allow them to find that next dream home.
Of course, other factors like political stability and overall economic situation have an undeniable impact but now, with the new Prime Minister, Theresa May, having been appointed, there are good signs of political stability and strong leadership through the negotiations with EU in the years to come.
It is true that according to recent research, prices have slid in London with 1.1% in the last month, however, we were anticipating London market to be a lot more sensitive to the result of the vote. We must not forget the Scottish market has a very stable, unique lure to potential buyers due to the high quality of life and excellent value for money our market offers. What’s more, with a lower GBP and favourable exchange rates, foreign investors are starting to think this is a good moment to own a wee bit of Scottish property.
With our 28 years of expertise on the local property market, our highly specialised local staff, unrivalled customer service and marketing packages, we will make sure each and every home that ends in our books will sell for the best possible price. Call your local Clyde Property branch today for expert, friendly advice on your next big move.