The UK woke this morning to the news that it has been determined that Britain is to leave the European Union. Following this result, David Cameron announced he is to step down as Prime Minister by October 2016.
Financial markets reacted immediately to the news and the FTSE fell by 8.7% at open; with banking and house building shares being some of the hardest hit. The Pound has also slumped against international currencies to levels not seen since 1985.
The only thing that now seems certain, is that we cannot be sure of much in the short term. The process of Brexit is unlikely to be quick or easy, and the prolonged period of uncertainty that will accompany this may be difficult.
The Brexit result is likely to impact on the housing market as well as the wider economy.
However, the collapse of Sterling may drive property prices down in the short term meaning cheaper properties in both the capital and outer regions. We will have to wait and see. Since the announcement this morning, both equities and Sterling have regained some of their early morning losses, as the UK, and indeed the world come to terms with Brexit.
There is likely to be an emergency budget following the Brexit announcement and it remains to be seen whether legislation will be changed to increase taxation or other revenue streams. We highly recommend anyone with significant planning strategies in their Wills to revisit matters after the emergency budget to ensure their documentation is up to date.