By Eric King-
The uncertainty surrounding Brexit is complicating the sale of properties, according to RICS UK .
According to the region’s estate agents buyer enquiries, agreed sales and instructions to sell fell in February for a second month in a row.
Three quarters of respondents to RICS UK Residential Market Survey said Brexit uncertainty was slowing down market activity. This is because several home owners and buyers are sceptical about how Brexit will influence inflation levels once the Uk leaves the European Union officially. The effect of Brexit on properties affects relates to the purchasing power of buyers once overall prices change , as well as its effect on the value of properties themselves. It remains unknown how much the value of properties will change once Brexit is finally agreed.
Whether the Uk leaves with a deal has a huge impact on the property market and the income levels of prospective buyers.
The survey also found stock levels had hit all times lows, activity stalled, and sales took longer to complete, with 30 per cent of agents reporting a slump in the number of new buyer enquiries.
Following Theresa May’s latest Brexit deal defeat, regardless of whether the UK now leaves the EU with or without a deal, the impact of further uncertainty is expected to be felt across all tenures of the housing market.
Simon Rubinsohn, RICS chief economist, said: “Although activity in the housing market continues to be weighted down by the lack of available stock, changes in the tax regime affecting property, and affordability; feedback to the latest RICS survey makes it pretty clear that the ongoing uncertainty around how Brexit will play out is the critical factor influencing both buyers and sellers.
“And with little sign that the issue will be resolved anytime soon, it could prove to be a challenging spring for the housing market and the wider economy.
“It is clear from professionals working in the market that this environment requires a greater degree of realism from those looking to move.
“A reluctance from some vendors to acknowledge the shift in the balance of power in the market will compound the difficulty in executing transactions.”
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