Following the vote to leave the EU that caused panic in the UK property market, Anthony Hesse, the managing director of Britain’s oldest estate agent recruitment consultancy, has called on employers to “hold their nerve.”
His comments come on the heels of a quick survey performed by the Chartered Institute of Personnel Development (CIPD) that tried to gauge recruitment intentions. The survey shows that about half (48 percent) of its members are of the view that it’s “too early to tell” how Brexit will impact on the property sector.
House Shares fell and Rebounded After Brexit, Fueling Uncertainty
At the beginning of last week, holdings of major housing companies such as Countrywide, Foxton, and Purplebricks, fell by as much as 20 percent, but rebounded on Thursday. Some closed slightly higher at the end of the week thanks majorly to the influx of foreign buyers who took advantage of the lower pound exchange rate to scout for bargains.
House Prices Rose by 0.2 Percent in June Despite Brexit
However, Nationwide Building Society’s chief economist, Robert Gardner, said that despite the fact that house prices rose by 0.2 percent in June, the impact of Brexit has not been fully felt yet. Gardner said that analyzing the housing market at the moment is also complicated by the new stamp duty tax on buy-to-let property and second homes. He explained that it is difficult to assess how much fluctuation is due to the new stamp duty charge, how much is due to general shortage of properties in the market, and how much is due to the vote to Leave.
Anthony Hesse Warns Against Panic
Anthony advised that after such a historic decision like Brexit, a “hasty, knee-jerk response” would not be good for the industry. He challenged UK’s estate agents not to be pressured into making haughty decisions that would have long-term effects they may regret.
In his statement, he said: “Brexit is more of a process than an event – so the immediate impact will be limited, because any major changes will take some time. As a result, employers need to hold their nerve and consider any next steps carefully.”
The CIPD survey also reported that more than half (54 percent) of its members are still without a post-Brexit plan, and just 26 percent are actively developing one - a report Anthony Hesse said he is concerned about.