Brexit Property Prices Advice, Building Sale Tips, UK Real Estate Best Practice
Property Prices after Brexit
27 November 2019
Property Prices after Brexit in the UK
While the direction of Brexit continues to weigh the market, UK houses remain subdued. The current nationwide figures illustrate a 0.1 percent increase in property prices. After 11 consecutive months, the price toned to a constant rate of below 1 percent.
City A.M asserts that the recent modest rises underscore emerging issues over laxity in activities in the UK housing market, with particular relation to London and South, despite the elevation of earnings and employment. Unless there is clarity on Brexit, it will be difficult to perceive a positive change from the 1 percent growth. Besides, the steep level of political ambiguity has left the property field in a lingering midpoint.
Whether you are an avid Breexiter or staunch remainder, the truth is when the UK leaves the EU, there will be room for uncertainty, causing the property market jitters.
What has been the impact of Brexit? Which?
Magazines assert that Brexit has led to significant economic instability culminating in a decrease in property prices each year. The nationwide chief economist explains a standard rate rose by £800, which registers a slow growth as opposed to the previous years. The slow growth takes place after the Brexit referendum, where prices increased by £1,900.
Considering the house prices over a decade, there has been a slow growth of the incoming prices each year. The approaching Brexit deadline has undeterred potential buyers. On the same note, sellers have lost the zeal to engage in such contracts.
Looking at the London and South East price statistics, it is vivid that the prices have stagnated. However, other areas such as wales and North Ireland have registered an increase of 5 percent. Most UK towns that voted Brexit referendum leave have seen house prices increase.
Online estate agents’ research depicts East Midlands’ rise in house prices for June 2016. While at the same time, prices in Rutland increase by 26.27 percent. In a recent comparison, 15 out of 20 English areas voted to be part of the referendum.
Despite the significant changes experts illustrate, there is more to a difference in house prices change than what meets the eye. Voting leave alone is not the critical factor affecting housing prices; there are other factors contributing to the slow growth chain.
House prices after Brexit
In August 2019, the Reuters poll house experts predicted the house prices in the capital would fall by 2 percent with no expectations of the figures to increase next year. How? A chaotic EU departure will alter the prices and experience a 10 percent decrease in London for over six months. The change will occur after a no-deal Brexit.
Royal Institution of chartered surveyors explains the decrease is an outcome of Brexit uncertainty. It means every part of England will expect a price drop. However, there is still some room for an increase in the next 12 months.
If you are a first time buyer, the rise and fall of house prices may not affect you. The number of buyers and sellers in the coming years is not expected to increase. But if a deal is agreed with EU, potential sellers and buyers who will be waiting will have more confidence in going ahead.
It means buyers and sellers put on hold their plans due to Brexit uncertainty in the housing market. The significant change affects decision making, placing the house market activities to a standstill.
Brexit and mortgages
Lenders have engaged in high competition for clients of both remortgages and purchases. The latter is due to a slow market growth leading to a few mortgages. It means a large number of mortgage deals are available, and lenders have become keen to lend.
Brexit has not had a negative impact on borrowers in the mortgage market. The Bank of England base fell at a rate of 0.25 percent. The change remains at 0.75 percent, meaning the prices are still low. Any increase in the coming months will be gradual and limited.
Should you wait until the effects of Brexit are clear?
It is essential to acknowledge, there could be any outcome after the Brexit uncertainty, but putting your life on hold is not the best decision. If there is a need to act now, and there are no grievous risks, there is no need to delay as long as you protect yourself from future risks.
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