In today’s blog post, we’ll be discussing what the experts are saying about the UK housing market when it comes to Brexit. Will house prices be negatively affected? Is this a good time to buy or sell?
Brexit needs no introduction. As is stands, we’re all still very much unsure of what the outcome will be. There are two main avenues to explore at the moment: will we leave with no deal or will we come to an agreement with the EU? Regardless of the outcome, we can positively say that everyone is wondering how this whole thing is affecting the UK housing market.
What experts are saying about house prices
Essentially, this is what people really want to know about. House prices are at the core of the housing market conditions and can have a big impact on how we approach buying and selling. Although, people don’t seem to be too put off at the moment. Many potential buyers/sellers are shaking off Brexit concerns and opting to just ‘get on with it’, according to the Sunday Times. But what are the experts saying?
Managing director at Halifax, Russell Galley, expects that ‘mortgage payment affordability’ will be the most prominent issue for UK housing, as opposed to Brexit uncertainty. Speaking to Ideal Home, the managing director suggests that although growth could slow slightly in the short term, the long-term challenge facing the UK is the affordability of homes for our country’s young people. On the other hand, Ray Boulger, Senior Mortgage Technical Manager at John Charcol, seems to think that the Bank of England will cut interest rates if the “economy weakens too much after Brexit”.
Looking at how things are currently, experts can already see an influence on London house prices. If we leave the EU with no deal, it seems that there will also be a short-term negative impact on UK-wide house prices but the uncertainty of this is already apparent. So, in conclusion, there really isn’t as much to worry about as you may think. Any dramatic changes in UK house prices will occur sooner rather than later, as the Brexit uncertainty is potentially worse than the actual outcome. Despite Mark Carney’s statement, Ray Boulger thinks the Bank of England will compensate any downfall in the economy with slashed interest rates.
Is this a good time to buy or sell?
If you’re worried about ‘getting in there quick’ before Brexit happens, don’t. There really is no need to rush the process and, likewise, there’s no need to put it off either. Generally speaking, there won’t be a major change in house prices in 2019, according to the BBC. However, if we’re really going to nitpick, London will likely be affected the most. Mr Burrell, of Capital Economics, suggests that house prices may drop there but rise everywhere else – great news if you’re looking to sell up north. But use this information with a pinch of salt, as many experts are struggling to come to a solid conclusion.
There is a silver lining in all this though. It’s not all guesswork and uncertainty! Some banks have taken this time to announce great new initiatives that will no doubt have a positive impact on the UK housing market. For example, Lloyds has just announced 100% mortgages for first-time buyers. If you’re looking to buy your first home, then obviously, now is a great time to start making things happen.
If you’re ready to make the move and put your home on the market, or you’re looking for your next property, don’t hesitate to drop us a message or give us a call.