London has not only seen a property boom of late, it has also experienced an explosion in home improvement projects. Extensions have long since been a popular way for Londoners to increase space and create modern, family friendly spaces. However, with the UK voting in favour of Brexit, what does this mean for the home improvement industry in London?
It’s still early days and though much has happened since the result was announced on 24th June, what will happen in the long term is anyone’s guess. However, a short term picture is beginning to emerge.
A drop in house prices in London is happening and in the upper end of the market, stagnation is likely. Faisal Durrani, head of research at property firm Cluttons, told The Guardian that: “the prime central London market had been slowing for more than a year, but had been ‘amplified’ by the referendum result.”
The number of homes changing hands is expected to slump this summer. A survey by the Royal Institution of Chartered Surveyors (RICS) found that new buyer enquiries declined ‘significantly’ during the month of July. However, demand was already beginning to fall even before the Brexit vote due to higher levels of Stamp Duty and stricter mortgage criteria.
Currently, the economic outlook is not looking as bleak as some had feared. However, Uncertainty is causing some experts to predict that the economy will shrink in the third quarter.
These economic headwinds could mean that the trend to ‘improve not move’ could gain further momentum, as moving will look even less appealing.
However, all of the uncertainty means homeowners may delay plans to improve. Rob Wood, owner of Simply Extend says, “to date the impact of Brexit on our business has been minimal. We’ve had quite a few clients delay decisions by a couple of weeks since the referendum result, but are now deciding to move forward as there doesn’t appear to be any short-term financial risk.”
As the nation comes to terms with the result of the EU referendum, which saw 52% vote for Brexit and a new government in place, people are starting to get their confidence back despite the backdrop of uncertainty.
Wood is no stranger to economic headwinds. He began his business in 2008, the start of the Great Recession, with his wife Helen Wood. However, this did not stop them winning work.
“It was the fall in house prices in 2008 and 2009 that saw the trend for improving not moving,” said Wood. “In unstable times people look for certainty and offering fixed prices helps clients to feel reassured. What homeowners don’t want is any surprises. ”
Invest in your property with an extension and create the space you and your family need. Our fixed prices help you manage cost and you will be assigned your own project manager, who will oversee the process from design and planning through to completion. If you want to improve not move, contact us on 0800 917 7571 or click here to fill out a free site survey form.Share this: