01 Jul After Brexit
Well, the British public had their say on us staying in the European Union and voted for Brexit ( Britain Exiting the EU). Whether it’s good or bad for the U.K it is happening. The Stock markets were hit hard on Friday with billions of pounds wiped off the FTSE and the Pound down to levels last seen in 1985, David Cameron who was in favor of staying in the EU has said he will step down as Priminister in October. So, all in all, it was not a good day for the U.K or was it ?? Also, what about if you are looking to try and achieve a sell house fast service in today’s market, is it even possible?
How did we get to this position
David Cameron will be asking himself the exact same question, the simple answer is – well there isn’t one.
The last time the British public had a say on the European Union was in 1975, back then the EU was known as the European Economic Community and since then Europe has changed dramatically.
Back then, we were voting on joining an Economic Common Market of which there were nine member states with a population of 250 million. As it stands at the moment there are 28 member states with a population of 500 million, with the intention of letting more states join, one of which being Turkey. Back in 1975, the purpose of a European Union was simply an arrangement for trade agreements, now in today’s EU is a fully fledged political union, giving power to Brussels to make changes to our laws and policy.
Should it be down to the British public
At the last general elections, one key point in the Conservative manifesto was to give the British public a referendum on being in the EU, the reason Mr. Cameron agreed to this was to bolster his chances of getting back into power. I bet he wished he didn’t agree to this now, with his resignation pending in October the UK’s future is very uncertain at this moment in time.
According to British law, a referendum isn’t legally binding, so in theory, David Cameron who opposed Brexit could decide to ignore the will of the people and put the vote to Parliment and hope the majority decide to remain.
This is due to the fact parliament is sovereign and referendums aren’t binding in British law.
In 1975, when the UK voted to join the EU ,UK voted to join the Conservative MP Enoch Powell was very unhappy and described it as a nation losing its national sovereignty, he argued that the result wasn’t legal and was merely a provision and should be ignored by parliament.
The wrangling reflects the fact that there is no binding legal process to force Cameron to invoke article 50. In theory, he could ignore the public and disregard a Brexit vote. In practice he has repeatedly promised that the result will stick – and there may be no going back on that line now.
How did the EU START
After the Second World War, relations between Germany and France were at an all time low, there was a new movement to build relations between these two countries which lay the foundation for the EU.
The origins of the EU can be traced back to the European Coal and Steel Community and the European Economic Community, formed in 1958 by six countries Belgium, Germany, Italy, France, and Holland.
Britain joined the European Economic Community in 1975 (EEC) which was changed in 1993 to the European Union following the Maastricht Treaty. Since then the EU has grown to 28 member states and has been under financial strain since the 2007 crash. The latest major change the EU was in 2009 when the Lisbon Treaty was agreed.
What did you benefit from leaving the EU
The UK benefits from being in the EU Economically and Socially, being a member state in the EU means that you’re part of the free market, which gives you access to over 500 million people which generates combined trade of $16.6 trillion a year. Free market mean there are no tariffs on export or imports, these benefits have a positive impact on UK businesses we exported $293 bn to the EU last year.
Membership has increased flows of investment into our country since the free market was established investments in the UK has doubled with over £1.2 trillion invested in the UK so far.
The free movement (open borders) has brought benefits to the UK economy, this helps business plug skills gaps, it also works both ways and opens up the job range for our citizens wanting to work overseas, which makes finding a job a lot easier.
Property Market Affect
This is the question on everyone’s lips in our industry, how will BrExit affect the property market. If you have a crystal ball or even more so if you know Mystic Meg then we would be happy to hear your thoughts. The safest answer is ‘we don’t know’! If very difficult to predict exactly what is going to happen but we can have a look at how things have been over the last week and what’s happening in the markets to give us an idea. The Financial Times says that due to the weak pound this is encouraging foreign buyers to want to invest in the capital, as they will be getting value for money on their purchases. Many of these buyers are looking towards the exclusive parts of London.
On the other side of the coin we have seen the market slightly slow down as family and vendors that have committed to purchases have now got the decision to fulfill their initial obligation to purchase the property or to wait to see what happens with the market. Many are worried about house prices and also their job security in the future before committing to the sale. Read here for more FT http://www.ft.com/cms/s/0/51fec570-3ba6-11e6-9f2c-36b487ebd80a.html#axzz4CnKAKYLa
Some estate agents have been saying that they have lost several sales on the day and here is why.
“One client said they weren’t going to go ahead because they were worried about negative equity. The other one said they were going to postpone because they wanted to be in a more stable position before committing,”
This seems to be the case for a lot of vendors in today’s market. May are worried about job security and where the market will be in two years. If they have to remortgage, then will they be able to afford to?
Many people are looking to different methods when they are looking for and achieve a sell house fast service as they are losing confidence in the open market.
What are the Pro’s and Cons of Brexit
So what are the pros and cons of being out of the EU? This is really down to opinion and if we can move forward with setting up good trade deals. Initially, we would say that the leaving the EU we will benefit from the cost of being a member and this works out at around 8.5 Billion.
For many people that voted to leave, sovereignty was seen as a simple win: few disagree that EU membership involves giving up some control over our own affairs.
Currently, Britain cannot prevent anyone from another EU member coming to live/work in the UK – while Britons benefit from an equivalent right to live and work anywhere else in the EU. The result has been a huge increase in immigration into Britain, particularly from eastern and southern Europe.
Figures from the Office for National Statistics, show there are 942,000 eastern Europeans, Romanians and Bulgarians working in the UK, along with 791,000 western Europeans – and 2.93m workers from outside the EU. China and India are the biggest sources of foreign workers in the UK. This puts massive pressure on our services, the NHS and also being able to service that increase in population.
As we have seen over the recent few days the market has gone into a mild spin some would say this was always bound to happen. Some of those taking the biggest hits have been the banks, the pound and even the FTSE took a battering (however all three are back on their way back up).
Another huge con is chaos that has ensued aftermath has us without a prime minister and the labor party is in complete disarray.
We also need to rebuild our trade deals with Europe, but this is seeming not as straight forward as they want us to start the process of article 50 before the EU will enter into negotiations with the UK.
Either way its testing times for the UK so if you need a sell house fast service then give us a call on 0800 612 1366.
We have briefly touched on the economy in the future and it’s anyone’s guess, at this moment in time as to what will happen? Our opinion is that we still a small period of austerity over the next few quarters until the market settles and picks up a trend. The BOE is promising a 250 billion pound injection to the market and so this could have an immediate effect to calm the nation down.
Most of the claims made about the costs and benefits of Brexit for the British economy are wide of the mark but we feel most of them are lacking actual evidence.
We think that Brexit could have a modest negative impact on growth and job creation. But it is slightly more plausible that the net impacts will be modestly positive. We feel this will be short term until the news settles in.
In terms of financial services, foreign direct investment and impacts on London property markets are more likely to be short-term and there are longer-term opportunities from Brexit even in these areas. There are a few banks that are talking about moving their offices out of the UK.
For many looking for a quick house sale service ,then we can advise that no matter whether we are in, or out of Europe, we can help. As a genuine cash buyer, we can help you to sell house fast in England or Wales. Our unique sell house fast service allows you to pick your own completion day in a matter of weeks.
If you need to sell commercial property fast then we can also help you to complete a sale for your commercial unit, just give a member of our team a call on 0800 612 1366 for a free no obligation cash offer.