With the clocks going forward a few weeks ago now, I am starting to see the warmer summer months tumbling towards us; while I hold optimistic feelings about possibly being able to grab a bit of overseas sun, I am even more optimistic with just how great the property market is doing as we come out of the darkest times most of us have ever lived through.
After the EU referendum way back in 2016, we saw the global financial markets negatively react on hearing we would be leaving the EU. As everyone came to terms with the result, and what it would mean for the UK economy against the backdrop of the rest of the EU bloc nations, markets started to settle down.
Leave or remain? Whatever your personal view, it was a reality that we had to work proactively to protect our businesses, suppliers, and customers to ensure our business practices were Brexit ready. What we didn’t see coming was leaving the EU while also in the wake of a global pandemic. In many ways, this makes it difficult to untangle Brexit issues from ‘lockdown’ market fluctuations. With the economy opening cautiously, and restrictions being lifted, homeowners and buyers are continuing to grow in confidence and therefore are stimulating the market.
While the UK was strongly looking at the possibility of a ‘No Deal’ exit from the EU, the trade deal that was finally agreed on has meant that, in the main, no tariffs and quotas are being introduced at this point- but what it does mean is that as the UK no longer follows EU rulings on product standards so we need to implement our own checks (and paper work) – fortunately for the estate agency industry, this will have minimal impact on the products and services we offer.
The inclusion of estate agents within the list of businesses permitted to continue trading through the last lockdown, from just after Christmas 2020 until April 2021, meant UK buyers and sellers could still move house and invest in domestic and commercial property- this move by the government was not only a lifeline for home owners needing to get on with their life plans, but also maintained a positive effect on both stimulating the economy and supporting independent estate agents to continue trading- saving jobs, and guarding against financial losses from a property market that would have stagnated if they had been forced to close.
The stamp duty holiday and government backed low deposit mortgage scheme implemented to stimulate the market has created a boom in the number of viewings and sales. The stamp duty ‘holiday’ is being slowly phased out until it ends at the end of September 2021 which has encouraged buyers and sellers to push for completion dates before this time; on the back of Brexit and Covid-19, now is the perfect time to really be able to drive your estate agency business forward.
Financial analysts have predicted that the economy will shrink temporarily as part of the aftermath of Brexit, however, residential and commercial property markets are set to buck this trend and rebound strongly throughout 2021, with a particularly strong acceleration throughout Q3 and Q4. In March 2021, the House Price Index showed that the average house price within the UK stood at £256,405 which was an increase of 1.8% compared to February 2021; this was also an increase of 10.2% compared to March 2020.
The success of the Covid vaccine programme across the UK is another strong contributing factor in getting the UK back to business. The phenomenal achievement of the NHS is not only keeping us, our loved ones, and our colleagues safer, it is literally injecting (excuse the pun) confidence into our roadmap out of restrictions and towards a brighter future.
With Brexit done, the economic and political uncertainty that has clouded the UK economy since the referendum has started to lift. Our new relationship with other European countries, and the new deals being agreed between the UK and the rest of the world, ensures we can keep building our businesses and accelerate our growth into the promising new times of our new ‘normal’.
If you are looking for a way to accelerate the growth of your independent business, do get in touch, with no obligation, to discuss how we can help you reach your full potential as a Hunters Franchise Partner. I look forward to hearing from you.