Where Do Off-Plan Property Sales Stand Post-Brexit?

Where Do Off-Plan Property Sales Stand Post-Brexit?

The effects of Brexit are something that has been on the minds of many but depending on which stories you wish to read, property in new developments and off-plan property sales are either slowing down or a taking a sudden rise in sales and values post-Brexit. Seemingly, some new property developments and off plan properties have been put on hold indefinitely, meanwhile, others rushed for completion.

There is a vast contradiction among the media on what exactly the effects of Brexit are. The Guardian claims that “Housing sales forecast to fall sharply this summer after Brexit vote”, however, in June a survey which was conducted by the Royal Institution of Chartered Surveyors (RICS), found that the supply of properties had fallen. The newspapers findings found that sales and interest decreased also.

However, regardless of the June survey, which took place amid all the fears and uncertainty of Brexit, house buyers and investors were left mulling over the recent increase in Stamp Duty. So irrespective of Brexit, the slowdown in sales was already inevitable.
But as well know, uncertainty leads to fear but there is an undeniable and underlying demand for homes in the UK. It has been estimated that as many as 220,000 new homes are to be built every year. This has inevitably attracted the interest of the wealthy foreign investors, where UK property investment is at the top of their investments targets.
The slowdown in the sales has been caused by different factors, which all appear to be coinciding at once:

1. The rise in Stamp Duty in April and the sudden rush to get properties pushed through and completed before the new law was enforced, meant sales increased very quickly.
2. Generally, the property sales take a dive in the summer months and the market is quiet.
3. Brexit and the uncertainty of whether we will remain in the EU and the effect that this would have. Subsequently, we voted to leave and therefore the public and investors especially were very skeptical on parting with their money.

Now the year is coming to a close, we are already seeing signs that the effect of Brexit and the other contributing factors are quickly fading. The pound has rose to beyond its pre-election level and this creates exceptional value for foreign buyers but now we have clarity on what the Brexit formula plan is, this can only mean that more investment is on the cards.