After it was announced that the UK's vote to leave the EU won on a small majority, a cloud of uncertainty blanketed the nation, and even many of those who voted out fear what may be ahead.
Property investors in particular were probably left questioning whether this asset class would continue to be the best place for their money.
But as the philosopher Heraclitus says - The only constant in life is change. And whilst this is a biggie, the property market has and always will experience ups and downs and over any medium to long-term period, it will recover.
The result of the referendum, and potential impact on the market, only highlights that investors should be following a robust strategy. And actually, it could present some good opportunities.
However, you might be feeling any of the following feelings from the Change Curve, outlined below...
Shock
Most people tend to lean towards sticking with what they know, and any change to the status quo can be a shock. As late poll predictions were reporting that the UK would choose to remain, the Brexit vote itself was a shock to many. And the markets remain somewhat volatile - the pound fell, rebounded to its previous level and has now dropped again.
As far as property is concerned, the shock could cause some overall trends of the market to nose-dive, but this isn't likely to last for long. It will stabilise. Whether this results in higher or lower than pre-Brexit property values remains to be seen, but it has been proven that over any long-term period property provides the most stable returns of any investment.
Denial
As the sun started to rise on the morning after the vote, social media was alive with posts of utter disbelief. Reports also started to filter through of leave voters regretting their decision, with many stating that they thought the UK would remain part of the EU anyway, despite their vote.
This disbelief is evident in the active resistance of numerous petitions being started; one in particular that has secured over four million signatures calls for a second referendum. If we were a betting organisation, then we would put money on the fact that those who have signed it are in denial about it happening and looking for a way to change the situation.
Whether you're a property investor or just own your own home, you won't want to accept that the market may have changed significantly. You'll be in denial about the effect on your plans for the future. It could be that you're hoping to move and the property you want to buy will cost more or less. But remember, it's only ever the difference between the price you are selling for and the price that you are buying for that is significant in this situation
Frustration and depression
As the dust starts to settle and realisation dawns, the result of the EU referendum could leave much of the UK frustrated and angry - that's if they are not already. Frustrated that more people didn't vote or that those who chose to leave didn't truly understand what they were voting for. And angry that a lot of the leave campaign's propaganda wasn't strictly true. Leave voters are apparently especially angry that some of the very reasons they voted to leave - like the promise that more money would go to the NHS - are now being denied.
When the anger wears off, many people will be left feeling low and lacking the energy to protest any further. This is a common state of mind and not one to be worried about - it will pass and brighter days are on the horizon. When people realise that they can't control the situation but can control their own response to it, they start to feel differently.
It is this particular state of mind that can cause the property market to stall with nobody moving one way or the other. They just want to wait it out and see what happens before moving home, building a portfolio or investing in new property. This stagnation can be frustrating and the lull in activity can be depressing.
Experiment and exploration
The good news is that from here on out, the only way is up and we all start to consider the 'what ifs'. This stage of the change curve is about problem solving and rebuilding and we begin to open our minds to the potential positive impacts that this could have. We carry on and move on.
As opposed to having the belief that 'if it ain't broke, don't fix it', you could take inspiration from Facebook. Their guiding principle is to move fast, break things and leave the past behind.
Maybe this isn't such a disaster after all?
From a property perspective, this stage of the change curve reveals all sorts of opportunities. The predictions are that mortgage rates are likely to be cut, purchase prices could reduce, there will be less competition from amateur landlords and building and refurbishment work could cost you less. Great for investors and homeowners alike.
Commitment and integration
At this stage, people start to accept that the change is inevitable, leaving no other option than to start feeling more positive about the future. As the saying goes, we somehow find the strength to accept the things we cannot change, the courage to change the things we cannot accept and the wisdom to know the difference.
Then comes integration, when we start to take action and integrate this change into our lives. Have you ever noticed how when a road layout changes, you very quickly forget how it used to be before? You can't remember where the roundabout or the traffic lights were, but your route still takes you in the right direction.
That's true integration, when you realise you haven't thought about the change for a long time and just view it as normal. Your strategies have changed, and often leave you in a more robust place than before.
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So whether you invest in property or not, and with the final impact of the Brexit some way off, you should hold tight and have faith in the great British way of winning through. There is a light, and a very bright one, at the end of the tunnel.
