Despite all attempts by the authorities to mitigate the effect of Brexit, of the UK property market began to crumble, and quite rapidly.
In the first days after the referendum on the British exit from the EU has begun to receive reports about the closure of large and small real estate funds, and the events developed so quickly that the chain even came up with the name “Domino”. But then all somehow calmed down, but now start to do statistics.
Thus, according to the Royal institution of surveyors, UK (RICS) Brexit just killed the real estate market in the country. Furthermore, and even more important point that the decline occurred for luxury properties.
This shows that the majority of realtors fix lower prices. Moreover, we see that the indicator dropped to the lowest level since the crisis began.
In fact, there is nothing surprising. If people began to take money from the funds, and they in turn were forced to sell their assets in order to return this money, the price drop was supposed to happen fast enough.
Even then the publication Zerohedge cited a graph in which a visible gap between the value of the net assets of real estate funds and the price of that same real estate. It was clear that a long GEP cannot stay.
Data RICS are, in fact, are the first real indicator that reflects the impact of Brexit on the real estate market of Britain. It shows that the demand across the country fell to the lowest level since 2008 However, the number of for sale homes has also fallen to crisis level, that’s why we wrote that the market was dead. Moreover, the indicator of expectations of transactions in the next three months fell to the lowest in 28 years.
Experts believe that a vote for Brexit is clearly upset many buyers and sellers and, obviously, some of them reconsider their actions and try to reassess.
June 24, immediately after the shock of the referendum in the UK, the country plunged into the atmosphere of political chaos, financial crisis and impending economic disaster. The Prime Minister left office, the stock market and currency was in free fall, everyone who is even slightly versed in the international financial system, predicted the collapse and recession.
However, the country was headed by the new Prime Minister, and two months earlier than planned. British pound, British stocks and government bonds are rising again in price.
