March 30th, 2017
Yesterday is a day that will go down in the history books. Prime Minister Theresa May has triggered Article 50, the president of the European council has been notified of the UK’s withdrawal from the EU, and the Brexit process has officially begun.
Here we look at what Article 50 really means,
What is Article 50?
Article 50 of the Lisbon treaty sets out provisions for how a country can leave the European Union. The short 264 word document doesn’t provide much detail on how the withdrawal process actually works, but it explains that the country should “notify the European Council” and then set out “arrangements for its withdrawal, taking account of the framework for its future relationship with the Union.”
In other words, now May has invoked Article 50 and the European Council have been notified with a hand-delivered letter, we have two years to negotiate the terms of our exit.
What is in the letter?
A letter signed by Theresa May was delivered to the president of the European council at 12.20pm, which has triggered the exit process. Donald Tusk has Tweeted to say it has been received.
When will the UK officially leave the EU?
If this process is followed, Britain will have officially left the EU by April 2019. However, our Chancellor, Phillip Hammond, who was a keen Remain supporter, has suggested it could take up to six years for the UK to finish negotiating our exit terms. Britain’s terms then have to be agreed by 27 national parliaments - so it’s certainly no mean feat.
How will negotiations work?
To be honest, no one is entirely sure. As no other country has ever left the EU before, it has never had to be used - and on top of that, Article 50 was only created in 2009.
Team UK will most likely be led by Theresa May, with the Department for Exiting the European Union also taking a leading role. Secretary David Davis is the minister going into battle to secure Britain’s best exit deal possible, likely assisted by Foreign Secretary Boris Johnson, and they will go head-to-head with Frenchman and chief negotiator Michel Barnier.
David and Michel used to be rival Europe ministers with contrasting visions of the EU in the 90s, so they have come up against each other before. Michel has already warned of the tough stance he will take in negotiations, stating there will no “cherry picking” by the UK of the benefits of EU membership.
Denis Banawa Manager at Grey & Co Wembley, “In my opinion the triggering of Article 50 will not affect the property market directly from yesterday. However it removes the uncertainty surrounding when Britain’s withdrawal process from the EU will start, but in another way it will create economic uncertainty until the UK and European Union agree on a deal, Brexit will no doubt mean a turbulent two years for the London market as we begin to hear what negotiations and proposed deals are being put forward for our exit of Europe and the single market. Right now in Wembley we may experience some uncertainty, but as the EU negotiations progress, we will regain some stability into the housing market, as people realise that the effects of Brexit are not catastrophic and will go on with their plans in selling /purchasing . In time we’ll hopefully see transaction levels increase as a result, as history has proven bricks and mortar has been and will continue to be a good choice of investment". For property investment advice please contact our investment team on 0208-903-3909