What will happen if Britain decides to make a speedy EU exit? This is the question all investors and London Property owners are all asking themselves at the moment.
After having experienced the near catastrophic collapse of the single currency during the stride between Greece and the EU last year, it is of little wonder that investors are worried about the consequences of our own referendum on the wider markets. If we did vote to leave the EU in the coming months, what would be the impact on the housing market?
As we saw last year in the run up to the general elections, there is nothing that worries markets more than uncertainty and the strong potential for conflicting outcomes. As the EU referendum nears we would expect both buyers and sellers to take a step back and await the outcome before engaging in any new deal making. We consequently expect the markets to be quite quiet in the nearing months.
While the actual impact is very much uncertain, a Brexit will have wide ranging affects on the economy and most finance and business experts believe that Britain leaving the EU would have a substantially negative impact on inbound cross-border investments. Under these circumstances it is the prime central London property market which will be hit the hardest as it has historically been the entry point for all foreign capital making its way into the UK.
There is however some consensus out there which points to the fact that a British exit from the EU might attract further inward investment as we get freed from the shackles of EU regulation; consequently the property market would benefit. In fact more than half of Londoners believe that leaving the EU will strengthen the value of their home.