UK Property Markets Withstood Brexit Vote
British property markets and their values resisted the turbulence that followed the Brexit vote, reports a newly published paper by the Royal Agricultural University (RAU) and the Central Association of Agricultural Valuers (CAAV). Reporting on what actually happened in the first three months after the vote as buyers, sellers, lenders and valuers reacted in the new circumstances, it shows values remained driven by supply, demand and liquidity, not initially volatile sentiment.
Written by Jeremy Moody, Secretary and Adviser to the CAAV, UK Property Markets in Summer 2016: Brexit, Values and Valuation reviews the larger context and economic issues, considers the experience of the main property markets from agricultural land to the City of London and sketches some potential future issues, including construction.
Launching the paper at the Valuation Conference of The European Group of Valuers Associations (TEGoVA) in Dublin on Friday 21st October, Jeremy Moody, also Professor of Rural Land Management and Policy at the RAU, said:
“This is a story of commercial sense seeing through the turbulent moves in sentiment that immediately followed the vote. Despite many forecasts in the campaign and the risks from open-ended funds, markets have overall stayed on the paths they had before the referendum, whether strengthening or weakening according to all the other factors bearing on each sector.
“We have been aided by the prompt fall in sterling, offsetting risk, and the confidence given by the swift rebuilding of the Government but that does not warrant complacency on the long road to Brexit” added Mr Moody.
President of the CAAV, Nick Millard, explained the importance and relevance of this timely paper: “While markets may have stabilised for the time being, perhaps rather more rapidly than many would have predicted, I doubt that we have heard the last of the Brexit effect. This paper provides not only a clear and concise analysis of the trajectory of markets to date but also the tools for the reader to assess how things might change in the future. Not for the first time Jeremy has provided an authoritative text on a major development and I commend it to the reader, practitioner, academic or armchair pundit alike.”
Professor Joanna Price, RAU Vice-Chancellor, commented: “The unfolding consequences and implementation of the United Kingdom’s vote to leave the European Union will impact upon all of those in the agriculture, real estate, rural land management, Agri-Tech and agri-business sectors, and will inevitably have a significant impact on the future professional lives of those we are educating.”
Download the full report here.