D_Property

So far, 2016 has been a year of change; Stamp Duty, Brexit, May and Trump, to name but a few. And whether you like it or not, these changes may have an influence on the UK’s property market.

Interestingly enough, the Brexit discussion and Trump’s presidential campaign shared a lot of topics like free trade, immigration, inflation, tax and healthcare.

And comparing the two events, the UK’s decision to leave the EU and Trump’s victory during the presidential election in the United States, has already been done on multiple occasions.

We, however, prefer to ask how Trump’s win will influence the UK’s property market?

First and foremost, to be able to find out more about possible consequences, it’s important to view Britain’s housing market as what it is; a small segment of the country’s macro economy.

Having defined the role property plays within the UK, it’s easier to look at Britain’s overall economy to find indicators of future developments. In a what-if scenario describing the relationship between Trump’s America and post-Brexit Britain the possible outcomes received mixed reviews.

Whilst Trump has built his whole campaign on the basics of “America First” combined with a hostile attitude towards free trade deals, he will, nevertheless, need trade partners.

What we do know is that Trump regards the North American Free Trade Agreement as the “worst deal ever”, opening up space for new deals to be made.

How exactly Trump would influence the British market is tricky to call. Broadly speaking, America’s new president is a fan of Britain. He shared his enthusiasm about the referendum results stating it’s “a great victory”, aims to build the finest golf course in the world in Scotland and took Nigel Farage on his campaign tour.

Although British politicians might feel differently about the new President-elect, with both the old and the new Prime Minister describing Trump as “wrong”, Theresa May recently published a statement congratulating him on the win.

Since, at this stage, we know so little about possible effects Trump’s election may have on the UK, City A.M asked some of the biggest investors about their reaction to the recent results.

All seven of them stated a similar point of view: knee jerk reactions won’t get us anywhere.

On top of that, investors seem to have taken some comfort from Donald Trump’s victory speech, giving the situation another positive momentum.

So whilst it currently remains rather difficult to see what influence Donald Trump’s election may have on Britain’s property market, Laith Khalaf of financial services group Hargreaves Lansdown, probably summed up the situation the best by describing the stock market’s reaction to Trump’s election: “Initial stock market reaction to the Trump victory was a short intake of breath, followed by a shrug.”

source: www.buyassociation.co.uk

November 10, 2016
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Trump, Brexit & the UK’s Property Market – Dilemma or Opportunity?

So far, 2016 has been a year of change; Stamp Duty, Brexit, May and Trump, to name but a few. And whether you like it or not, these changes may have an influence on the UK’s property market. Interestingly enough, the Brexit discussion and Trump’s presidential campaign shared a lot of topics like free trade, immigration, inflation, tax and healthcare. And comparing the two events, the UK’s decision to leave the EU and Trump’s victory during the presidential election in the United States, has already been done on multiple occasions.
November 9, 2016
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Majority of estate agents in the UK not affected by Brexit, new poll shows

Nearly two thirds of estate agents in the UK remain undeterred and unaffected by Brexit as they have not seen activity drop as a result of the referendum vote, a new survey shows. Overall some 64% of estate agents polled by cloud based estate agency software provider Dezrez said they had not developed a Brexit strategy plan as they don’t see the need for one. Their confidence has increased since the vote in June, the poll also suggests. Just after the vote to leave the European Union Dezrez findings found that 22% of estate agents felt they has no need for a Brexit plan but now as of November 2016 that has increased by over 40%.…
November 9, 2016
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Eurozone house prices continue to rise

Residential property price growth in the eurozone continues to exceed the long-term average with no sign of a bubble last seen in the run-up to the financial crisis in 2007, the European Central Bank (ECB) said in its latest Economic Bulletin. Historically low interest rates and unconventional stimulus have driven down borrowing costs across the region, raising concerns among some experts at the ECB that the housing market could inadvertently overheat once again, undermining the bloc’s hard-earned financial stability.
November 8, 2016
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New property listings down by almost 7% in UK towns and cities

New property listings fell in October by 6.9% on average across the UK with four out of five towns and cities seeing a drop in supply during a typically busy month for property market activity. This is in contrast to September when property listings are generally up following the summer lull and suggests that sellers are in no rush to sell before Christmas. Overall 81% of towns and cities saw a drop in property supply with the largest fall in Swansea with a decline of 52% while supply actually rose by 30.9% in Crawley, according to the property supply index from online estate agent House Simple. Indeed, some 19% of towns and cities saw supply rising…
November 8, 2016
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Around half of homes in cities such as London and Manchester are leasehold

Leasehold properties, which can take longer to buy and come with additional costs, are alive and well in England and Wales, particularly in London and Manchester, new research shows. Indeed some 53% of homes in London are leasehold and 46% in Manchester while overall in the country just 15% are leasehold, according to a report from provider of home conveyancing services My Home Move. It points out that recently developed inner cities have the highest proportion of leasehold properties, making up more than 90% of housing stock in some of these areas.
November 7, 2016
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UK property prices still rising, up 1.4% in October, despite Brexit uncertainty

Residential property prices in the UK continued to grow in October, up 1.4% and are now 5.2% up year on year, taking the average cost of a home to £217,411, the latest lender index data shows. On a quarterly basis they were up just 0.1% but experts point out that this reflects a slowdown caused by the political uncertainty around the referendum in June on the UK’s membership of the European Union.
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