As the outcome of Brexit slowly starts to unfold, valuation specialist Glenn Kelly from Bruton Knowles Plymouth office explains what leaving the EU could mean for the south west property market.
In the period following the referendum and resultant political carnage, the most important message for existing and potential property owners has been that the south west economy is well set to remain resilient. This is despite the inevitable extended period of uncertainty due to the, as yet, undefined timetable for leaving the EU and there being no clear indication yet on future access to markets and trade agreements.
The south west has a strong entrepreneurial streak and its business people are extremely independent. Irrespective of their view on the outcome, they recognise that change can present opportunities and this can only be good for business. The region’s high proportion of start-ups and SMEs are highly flexible and can adapt to prevailing market conditions more rapidly than large businesses can.
There is still pressure to build more homes and there is currently no sign of an immediate regional slowdown in the residential market following the vote, but affordability remains a core issue. With interest rates remaining low, there is unlikely to be any short term impact on values and transaction volumes.
The south west has a strong job market that has the ability to adjust and take on a new trading regime. It exports significantly to the rest of the world outside of Europe as well as within and local businesses will look to build on those relationships as quickly as possible.
There will of course be a period of adaptation as the Brexit story starts to unfold, but property owners should all feel confident that in the long term regional businesses are more than capable of adjusting business plans and will continue to thrive in the new world order.
Changing markets can often provide real opportunity for the service sector. It is necessary to maintain a strong and detailed insight of local, regional and national markets and to encourage clients to conduct their due diligence properly and resourcefully when seeking out the best opportunities.
While there will have to be change within our markets and most certainly periods where progress is not as we would have hoped, this should not take away from the fact that new growth and development opportunity will be created as we move forward with Brexit.