More than half (56%) of brokers working in the fields of asset, bridging, mortgage and development finance are positive about the UK’s future following the EU referendum result.
The survey, carried out by United Trust Bank and which received over 300 responses, also revealed that 31% of brokers are worried about the future of the UK and a further 13% don’t think the referendum will change very much.
When asked how they felt the referendum result will affect their business, nearly half (49%) believed it wouldn’t affect it much at all while 32% predicted the effect on their business would be negative. Just under 1 in 5 (19%) brokers thought the Brexit would be positive for their business.
Brokers were also asked for their views on what might happen to several key economic indicators over the next 12 months following the Brexit decision.
Average UK house prices
- 62% – Expect Average UK house prices to stay broadly the same
- 32% – Expect them to decrease
- 6% – Expect them to increase
Inflation
- 49% – Expect the rate of inflation to stay broadly the same
- 44% – Expect it to increase
- 7% – Expect it to decrease
Brokers were asked what they expected to happen to the Bank of England Base Rate and as we now know the rate was decreased to 0.25% on the 4th of August. However this move took 43% of brokers by surprise as they expected the rate to stay the same or even increase in the first 12 months following the EU referendum.
- 56% – Expected the Base Rate to decrease
- 39% – Expected it to stay at 0.5%
- 4% – Expected it to Increase
Harley Kagan, Managing Director of United Trust Bank, commented:
“We know from our previous poll that just over half of brokers (51%) were pro-Brexit and it now appears that more brokers (56%) are feeling positive about a future outside of the EU.
Although there have been some immediate implications; a fall in the value of sterling and a slight upturn in inflation, largely linked to the currency devaluation, much of the worst of what Remain campaigners predicted would happen following a decision to leave the EU has yet to materialise. Although we are still at the very early stages of extricating ourselves from the EU, and Article 50 is yet to be triggered, there is a definite sense from the majority of the industry that for most lenders, brokers and borrowers for the time being at least, life goes on.
Although nearly one third of brokers felt that Brexit would have a negative effect on their businesses, from UTB’s perspective we are still very busy and receiving a high volume of proposals into all divisions of the Bank. Recently joining the Funding for Lending Scheme (FLS) has further strengthened our position.
As a result we have immediate funds available and a strong desire to support individuals, developers and businesses with the money they need to achieve their ambitions. Although there is still some uncertainty, there’s also opportunity, and whether investing in their homes and businesses, developing new housing or enabling a down-size with a bridging loan, UTB will continue to support customers and brokers, whatever the future holds.”