In June 2016 the world watched as the UK voted to leave the European Union, with a promise of a stronger more independent country, what has followed is 2 years of uncertainty and confusion about which way the country is headed. Likened to the worst divorce since Paul McCartney and Heather Mills, the country is still left wondering: what settlement are we looking at?
There is no doubt that leaving the EU would have a huge impact on the Economy, borne into the financial sector and housing market. The average UK house price fell by £5,222 or by 1.7% in November 2018 according to Right Move. Although, it is common for house prices to decrease slightly over the festive season the latest statistics indicate the largest month on month fall since 2012.
A report produced by Savills Estate Agents indicates that house prices between London and the rest of the country will narrow up to a 5th over the next 5 years.
The prime top end of the property market relies heavily on foreign investment, the vote to leave the EU has meant a drop in wealthy foreign investors, however saying in saying that this leaves a more open opportune market for buyers in the UK who are looking to invest.
What we are now seeing is sellers and agents reacting to this and decreasing their property prices, in turn buyers are reacting by putting a halt on their plans to buy or waiting for property prices to drop even further. The knock on effect of this reduction in pubic spending is creating a negative effect on the economy itself.
But its not all doom and gloom, overall house prices rose by 8.13% on average from £215,078 to £232,554 since Article 50 was triggered in March 2018 according to the latest ONS UK House price index. Generally the housing market has been steadily climbing and even since the referendum the number of sales hasn’t gone down much. David Blake of Which? mortgage advisor has said “I’m sure many potential buyers are waiting until we know more about the final deal, but this could go on a while and it’s tough putting your life on hold for an unknown….Recent price drops in some regions mean that its becoming a buyers’ market, so you might be able to get a ‘good deal’. Lets face it: Brexit is a complete unknown, and while professional mortgage advisors won’t have all the answers, they will be able to explain your mortgage options to help navigate this period of uncertainty.
It is important to remember that it is impossible to know the outcome and any kind of change will have an effect on the property market, but despite that the market as a whole has remained relatively resistant when compared to what was predicted.
If you would like advice or guidance on buying or selling your property, please contact Franklins on 01908 600966/01604 828282 or email us email@example.com. Our expert property advisors will give you all the information you need.