BoE agents: no clear sign of Brexit slowdown

Ryan Fowler

July 20, 2016

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The Bank of England’s network of regional agents has said that there is “no clear sign” that a slowdown is underway following the EU referendum.

But around a third of businesses spoken to thought there would be some negative impact on their plans over the coming 12 months.

The BoE said: “A majority of firms spoken with did not expect a near-term impact from the result on their investment or staff hiring plans. But around a third of contacts thought there would be some negative impact on those plans over the next 12 months.

BoE figures – robust October for mortgage approvals

“As yet, there was no clear evidence of a sharp general slowing in activity.”

Jeremy Leaf, London estate agent and a former RICS residential chairman, said the fundementals of the market are still in place for success.

He said: “The Bank of England’s findings bear out what we have seen since the referendum. Yes, many people have been knocked sideways by the result but since then, they have just been getting on with it.

“The fundamentals are still there, highlighted by today’s jobless figures which are very good. It is clear that people still want to get on. The Bank of England survey refers to a dip in housing market sentiment immediately following the referendum but transactions have been more resilient than expected. On the ground we have seen determination on behalf of people to negotiate hard and a new sense of realism emerge.

“Lenders still seem keen to lend, which will help support the market, while it looks as though the next move in interest rates will be downwards, making mortgages cheaper still and providing a further boost.”

BoE agents talk to firms around the country to gain clues about how the economy is really doing. Their July report is the first since the  referendum.

 

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