Even for a sector accustomed to sensationalist headlines, U.K. property has sparked its fair share of scrutiny in the run-up to the Brexit vote. Amid the news and views, where does the market stand?
Real estate activity has largely ground to a halt, as can be seen in the paucity of transactions in both residential and commercial markets. But all the blame cannot be laid at Brexit's door - it is difficult to separate pre-Referendum nerves from a loss of appetite due to the stamp duty on additional properties introduced on April 1st, ongoing geopolitical uncertainty, global economic weakness and cross-asset class market volatility.
Given the slowdown in transactions started many months earlier in the prime residential market, the follow-on negative pricing impact continues in this niche, while a dearth of available properties has so far supported average values at lower price points.
Meanwhile, for those property deals already under way, the popularity of "Brexit clauses" for commercial property transactions keeps growing and is starting to be seen, admittedly at a lower rate, in residential sale contracts, particularly in the luxury space.
Many believe that in the case of a Remain victory, we'll see a rush of deals as side-lined money is put to work. However, supply and demand factors also have as great an influence on post-referendum activity.