The likelihood of a vote in favor of the United Kingdom (UK)’s exit from the European Union (EU) was expected as an obvious disaster for 99% of economists, analysts and bankers. In June 2016, the UK did vote for the Brexit, launching a complex unprecedented process of tough talks and false starts.
Nine months later, the very process of the Brexit is just about to start with British Prime Minister Theresa May having obtained the greenlight from the Parliament. Many of those who predicted a Brexit’s win would immediately send the UK economy to the ground – and were wrong – are now arguing that the disaster didn’t happen because the Brexit hasn’t been formally launched yet.
On the one hand, some analysts took the decreasing demand in UK real estate as one more indication of an upcoming catastrophe for the post-Brexit UK economy. On the other hand, other analysts saw this decrease as a healthy comeback to more realistic real estate prices, lowering the risk of a bubble as a result and making real estate investment more accessible for a larger number of people.
Although the real future impact of Brexit on the UK economy remains unknown indeed, the British Chambers of Commerce (BCC) upgraded its growth forecast for 2017 at 1.4%.