The decision by the High Court on whether the UK government can trigger Article 50 and start the process of leaving the EU is “unwelcome news” for the residential property market, warns one of the UK’s leading estate agents.
Paul Smith, CEO of haart estate agents, said the decision will drag out the process of Britain leaving the EU, reducing confidence among buyers, sellers and housebuilders.
“It cannot be emphasised enough how much the residential property market is reliant on confidence, and as we currently see a market that is suffering from almost record low transactions levels, especially in the capital, it is now more important than ever that clarity is provided,” said Smith.
Three senior judges ruled on Thursday that the government would not be able trigger Article 50 – the formal mechanism for leaving the EU – without first consulting MPs and peers.
It has thrown the government’s plans to invoke Article 50 before the end of March next year into chaos.
If the government is forced to push the Bill though Parliament as a result of the ruling, it could potentially scupper the timetable for invoking Article 50.
While Parliament is unlikely to block Brexit, the ruling does give MPs the opportunity to delay the process and demand more details about the government’s negotiating strategy on leaving the EU.
Trade minister Liam Fox told Parliament: “The government is disappointed by the court’s judgment. The country voted to leave the European Union in a referendum approved by acts of parliament. The government is determined to respect the result of the referendum.
“This judgment raises important and complex matter of law and it is right that we consider it carefully before deciding how to proceed.”
Smith said a “quick, clean break” from the EU was needed, as opposed to a dragged out process that the ruling will make more likely.
“Britons have voted to be free of the EU, and their wishes should be respected with a clear exit strategy being put in place.
“Yesterday’s decision is likely to stall the process, increasing likeliness of a half-way house deal that would see many Brexit promises reversed, something that the government must avoid. Our property market has in the past proved robust, and bounced back in terms of adversity, however guarantees of future stability would certainly not go amiss – and clarity over the direction of Brexit is a good place to start.”
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