Leaders' response to the EU Referendum result

Fri 24 Jun 2016

Kevin Shaw, Leaders’ National Sales Director:

“Yesterday’s decision by the country to leave the EU is an historic one and a long process of adjustment lies ahead. However, nothing will change overnight and, following the uncertainty leading up to yesterday’s vote, people will still want and need to press on with their plans to move – whether buying, selling, renting or letting.

“Only time will reveal the true impact of our exit from the EU, however, we do know that the fundamentals of the property market remain the same and they all combine to create a positive picture.

“Interest rates are still at an historic low and if they do rise it will be gradual and from a very low base. Prior to the referendum, mortgage lenders did not anticipate a rise until at least 2018 or beyond, and leaving the EU does not necessarily mean this will change. The many doomsday predictions of the In-campaign are far from being a certainty.

“In the long-term, demand will stay high for properties to buy and rent and if the predicted drop in house prices comes to fruition it is only likely to be a short-term adjustment while the dust settles. Historically house prices have always been cyclical but risen over the long-term and this will not change. Any drop will help first-time buyers, who have been priced out of the market for many years, and is likely to result in a healthier market in the long run.

“I believe the buy-to-let market will continue to attract investors looking for good returns and a safe place to put their cash long-term. With demand set to rise - up to a quarter of all households are expected to rent privately by 2025 - existing landlords and new investors can continue to invest with confidence in an asset that has delivered better and more reliable returns than any other type of investment over the last two decades.

“Our future outside the EU has been decided and the ramifications of this in all areas – social, political and economic - are yet to play out as we see the Brexit process through. But people will always need homes and the property market will be more resilient than most as we forge a future outside the EU."