A post-Brexit trade deal deadline was set for tomorrow (December 12) but both the UK and EU have warned that a deal is unlikely to be reached by this point. The main sticking points between the two sides are fishing rights and business competition rules. If the UK and the EU do not agree to a trade deal by December 31, both sides could impose tariffs on each other’s goods.
The UK trade under World Trade Organisation (WTO) rules similarly to other countries that do not have a free trade agreement.
Many experts have voiced their concern over the impact a no deal will have on the UK’s property market.
Currently, the UK property market is experiencing a welcome boom after freezing earlier this year when the pandemic hit.
Now, it seems overseas millionaires are betting on the pound to weaken in the event of a no deal Brexit to buy London properties at a “relative bargain”.
Overseas Ultra High Net Worth (UHNWs) investors are waiting for the opportunity to invest in UK property, according to an expert.
READ MORE: House prices: No deal Brexit ‘won’t impact property market’
Leading private wealth law firm Boodle Hatfield has said many Middle Eastern investors are closely watching the UK’s exchange rate to see if they can bag a bargain.
The UK’s travel corridor list has meant many investors abroad have struggled to view properties in person.
However, with more countries being added to the travel corridor list in recent days, including the United Arab Emirates, more UHNWs are expected to fly into the UK to view properties.
Shaima Jillood, Partner and Joint Head of Middle East at Boodle Hatfield said even if a post-Brexit trade deal is negotiated in time, “UHNWs are betting on a weaker pound”.
He added: “Some are prepared to pay over the asking price as they’ll still stand to make substantial savings.”
Mr Jillood said that if the UK leaves the EU without a deal in places, bidding wars between investors could become “commonplace”.
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He continued: “Despite the impact of coronavirus on other parts of the economy, the high end of the residential market has seen high activity levels.
“In some cases, bidding wars have broken out between cash-rich Middle Eastern investors.
“Should Sterling take a hit from a no deal Brexit, we can expect these to become commonplace.”
Boodle Hatfield LLP’s clients are mainly wealthy individuals, families, property owners and businesses in the UK and abroad.
Despite there being some concern from property experts over Brexit, Product Technical Manager Nicholas Morrey from independent mortgage broker John Charcol told Express.co.uk that Brexit won’t have as much of an impact as people think.
Olu Olufote, founder of the homeownership platform, RenterBuyer, said in reaction to Halifax’s November House Price Index that Brexit will have an “inevitable” impact.
He said earlier this week: “The house price growth we’re seeing is great news for homeowners but a horror story for anyone looking to get onto the property ladder.
“The increase in prices has been fuelled in part by the Stamp Duty holiday and a flood of cash into the market due to the many Covid relief grants and loans.
“This level of government-supported demand can only last so long and the inevitable impact of Covid and Brexit will almost certainly be seen in the months to come.”