haart – High Court ruling has ramped up uncertainty

Ryan Bembridge

November 7, 2016

Last week’s High Court ruling has ramped up property market uncertainty according to haart estate agents chief executive Paul Smith.

The ruling that Theresa May does not have the power to trigger Article 50 without parliament’s consent has prompted calls for an early general election.

Smith said the decision is likely to elongate the process of leaving the European Union, causing a lack of confidence among buyers, sellers and housebuilders.

He added: “It cannot be emphasised enough how much the residential property market is reliant on confidence, and as we currently see a market that is suffering from almost record low transactions levels, especially in the capital, it is now more important than ever that clarity is provided.

“What we need to see is a quick, clean break from the EU, as opposed to a dragged out process that today’s ruling will make more likely. Britons have voted to be free of the EU, and their wishes should be respected with a clear exit strategy being put in place.

“Yesterday’s decision is likely to stall the process, increasing likeliness of a half-way house deal that would see many Brexit promises reversed, something that the government must avoid.

“Our property market has in the past proved robust, and bounced back in terms of adversity, however guarantees of future stability would certainly not go amiss – and clarity over the direction of Brexit is a good place to start.”

May had pledged to trigger Article 50 by the end of March 2017.

Last week the Financial Conduct Authority’s mortgage sector manager Lynda Blackwell told brokers that Brexit uncertainty just got worse.

She said: “Due to the High Court decision today, the uncertainty around Brexit is even greater.

“No-one knows what will happen but firms still have to abide by UK/EU laws.”

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