Our Head of Franchise Recruitment, Property and Acquisitions, Martin Bunney today discusses Brexit, and the interesting impact that the result of the referendum has had on our market sector.
The Property Market has many different sectors and the impact that economic uncertainty has on each can vary widely.
For example after 2007 the construction industry saw a sharp downturn, the tower cranes came down and many jobs and long term skills were lost. Access to capital for new construction projects all but dried up. Values in office, retail and leisure rents declined and portfolios became dangerously devalued and many were sold at a very low price or even sold to specialist rescue forums such as The National Asset Management Agency (NAMA) in the Republic of Ireland. Financial institutions had to refinance or exit from discontinued projects.
This rather grim picture was not reflected in Belvoir, the Lettings market grew steadily throughout the recession and the curve has continued upwards ever since, in fact, Belvoir has grown year on year for the past 18 years. In 2009 Belvoir had a record year for attracting new Franchise Owners, history tells us that the Lettings sector is extremely resilient in an economic downturn. Belvoir’s reputation, systems and support ensure that our brand is recognised as a “safe pair of hands” for our landlords. We expect to reap the benefits of these factors in the coming months.
Although there was very definitely a market correction in Estate Agency, after the last recession began, those that endured found many opportunities to buy property at the lower end of the cycle, finding bargains, provided they could afford to retain the investment until the market recovered. In fact the average house price has now recovered to a level 10% higher than the highest point before the last recession.
I believe the government must plan to keep the residential property sector buoyant and many indicators seem to show this is appreciated. There is plainly a need so the government must accommodate it. There is an old adage in our market “we all need somewhere to live” Belvoir Franchise Owners continue to meet that need.