House market trends are and will continue to be critically tied to Brexit according to Victoria Clarke, economist at Investec.
Following a period of the UK narrowly avoiding a recession, Clarke argues that recent data by RICS suggests that the ‘subdued’ housing market has underpinned by Brexit.
However other factors are at play within the industry, including cross-party politics.
Clarke said: “The industry is increasingly talking about the effects of a Corbyn-led government and many are more concerned about the effects that will have rather than Brexit.”
Investec pointed to an optimism being seen in the capital, with many investors seeing opportunities in the politically uncertain environment particularly as interest rates are set to remain stable.
Despite predictions that the house prices will remain under pressure, positivity is the key message from Investec.
Clarke added: “It has been a tough year – a tough few years – but there is no reason to not remain optimistic for 2020.”
Prime Minister Boris Johnson revealed that an agreement had been reached over a new Brexit deal on Thursday ahead of the October 31 deadline.
The Prime Minister still needs to gain support from his Parliament however which his predecessor Theresa May failed to do.
Clarke said: “This is a dramatic turnaround compared with 10 days or so ago, when relations between the UK and the Republic of Ireland appeared to hit a new low and a deal looked far from sight.
“This deal represents a major step forward, but much work remains to be done.”
This comes as Investec begins active negotiations to join the panels of the UK’s main networks and has started making changes to their remortgage offering to speed up the process.