A survey of brokers has found that 90% believe the UK government is not in control of the Brexit process, reported MortgageIntroducer.com in November 2017.
United Trust Bank (UTB) surveyed 140 intermediaries that work in property and finance. Almost two thirds (63%) said that the European Commission was in charge of the Brexit negotiations, 24% thought that that the government and the EU were evenly balanced, and 10% thought that the government was in control. The other 3% said they did not know.
UTB believes that UK business and households would benefit from having a clearer picture of how Britain will be after it leaves the EU in March 2019.
With news of negotiations on trade agreements and the free movement of labour still limited, brokers and lenders are aware that any restrictions on trade a free movement could negatively affect Britain’s economy. Brexit could also affect housing prices. Though the government should ideally be strong in negotiating in these areas, the brokers’ survey indicates that brokers are not confident in the government’s ability to take charge of the negotiations.
The state of the Brexit negotiations has created a climate of uncertainty, but this has not resulted in people ceasing to purchase property. Brokers have seen an increase in mortgages, remortgaging and bridging loan activity in 2017, and do not predict a slowdown in lending as Britain nears the EU leave date.
Uncertainty appears to be the new normal way of seeing the economy, and borrowers and lenders are adapting to uncertainty by largely continuing as normal.