Adam Cheal: Could Brexit be the single reason the property market fluctuates this year?

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I’ve been asked a few times over the past few weeks: ‘Could Brexit be the single reason the property market fluctuates this year?’

The few times I’ve heard this, I’ve had to grit my teeth and think.

The answer? Very possibly.

At Fletcher Longstaff, we’ve been lucky enough to launch our business during a period of relative stability for the property market. When we set up in 2014, we found that we were joining an industry that was in slow recovery from the immense damage that occurred during the financial crash and subsequent recession around 2008.

Many other businesses in the property sector will no doubt have their own stories surrounding this time, but this is the first time following forming our company we have been less certain than ever when it comes to the future.

If you believe the doom and gloom being spread across the media elsewhere in the last few months then you could be forgiven for fearing the worst. There are multiple sources that say this looks like the most uncertain times for a generation. When a majority of RICS members are having difficulty in knowing what is coming, it doesn’t feel like the best outcome, despite Theresa May’s assertions.

2019 should be an interesting year, it looks to be a worrying time which will no doubt lead to further uncertainty for a market that has been showing signs of recovery lately.

Whilst we firmly believe a hard Brexit is still unlikely, the uncertainty will likely slow the market and will keep people holding on. Just the other day we had a client requesting that they did not want to exchange until after the Brexit deadline so they could see more absolutely what will happen.

If this uncertainty spreads further, it could be a stilted time for us all. Within property, it’s also a trickle-down situation. If one step in the chain suffers from any delays or bumps in the road, everyone else suffers.

Also, if this kind of delay is already occurring with clients who are in the process, then those out of it may well also be having second thoughts and further slowing the market.

At Fletcher Longstaff, we believe a swift decision is needed on the political situation.

This will set out a more coherent 2019 for all of us. Property can be a fickle and volatile market, rocking the political boat is never a good sign for the industry at any level. The next few months, years and decades will be fascinating to observe, what we will have to do, particularly outside of the London bubble, is to stay customer-focused and reactive. How the rest of the industry will fare, it’s yet to be seen.

Column written by Adam Cheal, founder and Managing Director of Fletcher Longstaff.