Around 83% of conveyancers predict Brexit will significantly affect the UK property market in 2017. They place Brexit as one of the top three factors to have a significant influence on the UK property market in 2017, with almost half (48%) putting it first, according to new research released from Groundsure. Changes to Stamp Duty Land Tax ranked second on the list, followed by a shortage of housing stock.
Other significant factors predicted to influence property buying in 2017 include the election of Donald Trump, increasing consumer demand for digital solutions, continued uncertainty around the HS2 rail route and VAT introduction on CON29 searches.
Anecdotally, respondents spoke of “a possible rise in interest rates” and “cyclical economic uncertainty” as further additional issues that are likely to have an impact in the year ahead.
Dan Montagnani, Managing Director at Groundsure said: “The past year has been one of political and economic turbulence, with the UK witnessing some major changes, many of which will have a potential impact on the conveyancing trade. Whilst Brexit appears to have had a negative impact on house prices, particularly in London, monthly statistics do not appear to support the theory that this has adversely impacted transaction volumes. However, transaction volumes have been consistently below expectations since April 2016 and I believe this is due to Stamp Duty Land Tax changes that came into effect at that time.
“Adjustments in the value of the pound and weaker London property prices, of course, make property more attractive to overseas investors and this may be a contributory factor for the lack of evidence in overall transaction volume decrease since Brexit,” added Montagnani.
(Source: Groundsure)
