Earlier this week’s, the Government’s appeal in the Article 50 case to trigger the country’s departure from the EU was dismissed by the Supreme Court. So what does this ruling mean for property investors, both at home and abroad?
The triggering of Article 50 will be the UK’s landmark event of the year when it comes to the economy and politics.
The latest ruling by the Supreme Court means that the Prime Minister, Theresa May, will need the Parliament’s support to trigger Article 50.
What Does the Article 50 Ruling Mean for Property Investors?
To see this through as quickly as possible, the Brexit secretary, David Davis, promised to bring legislation before MPs “within days”, highlighting yet again that the Government is still committed to start Brexit negotiations by the end of March.
While the ruling also means that the Government has no need to consult regional parliaments, the Scottish National Party (SNP) has already hinted at plans to lay out up to 50 amendments, including a stronger role for Nicola Sturgeon.
Since the Article 50 case was first heard, several other Brexit developments have happened, the most significant being May’s crucial Brexit speech. During the address, the Prime Minister made her commitment to pulling out of the single market fairly clear.
After Tuesday’s Article 50 ruling, sterling dropped once again against the US dollar, down to lows of $1.2438, before ending the day flat against the US currency.
How will this affect property investors?
Generally, property investors can be divided into two groups: domestic investors and foreign investors. Although this is a worthwhile distinction to make, in most cases, the biggest influencing factor when it comes to investing in property remains the same – the level of uncertainty that comes with an investment.
The Article 50 ruling was the first stepping-stone to removing some of this uncertainty. With the Government now promising a very quick turnaround to get the bill before Parliament, even more clarity is expected shortly.
For domestic investors, very little will change, especially considering the extremely quick turnaround the Government is hoping for. And while Parliament is right to scrutinise and debate the legislation, Davis insists that it won’t be used as “a vehicle for attempts to thwart the will of the people, or frustrate or delay the process of our exit from the European Union”.
In addition, the recent decision has changed very little, if not nothing, about the two basics of the UK’s property market – high demand and low supply.
For foreign investors, the hunt for cheap property may have already begun. Those hoping to buy using foreign currency will be wise to keep an eye on the exchange rate, especially since sterling has already experienced a drop.
Considering the Brexit decision itself, although not all property investors will agree with the plans May and her Government have set out, uncertainty is slowly being removed from market sentiment.
In addition, the Government appears to have already started working on new trade relations and partnerships with countries outside the EU, cementing Britain’s position as a stable investment location.
Has the Article 50 ruling affected your confidence in property investment?