The epic result of the EU referendum has filled many home owners with concern. However, this may be unfounded. Only time will tell if the decision to leave the UK will have any major impact on the property market but our sources at the ESPC think the Scottish housing market is stable enough to weather any uncertainty.
As remarked by Mov8, the market here is particularly insular meaning that most people moving here are from here. This is not the case for the South of England and the City of London which sees much greater levels of immigration from within the UK and from further afield. Therefore if Brexit leads to widespread unemployment, negatively affects salaries or mortgage availability then the South of England would be particularly affected. Scotland would naturally also be affected but it is thought to a much lesser extent.
Others argue that the weak pound that we currently see as a result of the referendum result may in fact translate to the UK being an attractive investment for oversees buyers leading to an upsurge in activity throughout the country.
If you look at how the financial crisis of 2007-2008 impacted on sales, although the number of sales in Scotland declined, the average residential property prices remained consistent, indicating a particularly resiliant market. At Home in Edinburgh therefore hopes that history repeats itself and the Scottish property market will stay strong again.
General opinion seems to indicate that after article 50 is invoked, the markets will experience a decline as they react to the inevitable uncertainty ahead. However, it is thought by many that this will be short-lived as the country comes to terms with the consequences of Brexit and we start to make concrete plans for the future. At Home In Edinburgh will be watching from the sidelines.