Andrew Montlake: Brexit extension could trigger a bounce in transaction levels
The latest Brexit extension could trigger a bounce in transaction levels and a minor strengthening in house prices, Andrew Montlake, director of the mortgage broker, Coreco has predicted.
The UK was due to leave the European Union tomorrow but after Prime Minister Theresa May asked for a short extension, EU gave the UK a six-month extension until 31 October with a review to be held on 31 June.
Montlake (pictured) said: “Mon dieu. That the new proposed end date for the ongoing Brexit nightmare is Halloween is proof positive that Hollywood is writing the UK’s political script.
“The latest delay isn’t long enough for some and short enough for others, but for the UK property market the bleak drama playing out in Westminster is becoming less and less relevant.
“With both the Global Financial Crisis and Brexit under their belts, many prospective buyers and sellers are accustomed to chaos and are increasingly getting on with their lives.
“Whether or not this new delay gives Parliament enough time to come to a sensible rather than rushed solution remains to be seen, but it’s likely to trigger a bounce in transaction levels and a minor strengthening in house prices.
“Over the past month or two, we’ve seen a marked pick-up in activity levels. More and more buyers are realising that the current market volatility is their trump card and they are playing it accordingly.
“Right now, with the correct negotiation, property can be acquired at a discount, and with the extremely competitive mortgage rates still available it’s no surprise people are increasingly emboldened to buy.”