The ‘B’ word. It sends shivers down most peoples spines at the moment. With a deadlock that seems never ending and a gloomy economic outlook, just how is the property market performing and what effect will Brexit have?
I personally look at the news 3-4 times a day and relish following the Brexit soap opera that seems to have Britain completely tied up in loops. We are clearly in uncharted waters and the property market in my opinion doesn’t know where to turn at the moment.
Lets take a look at some recent headlines…
“House prices are falling at their fastest rate since the start of the financial crash bounce back.” Home & Property 20/03/19
“Pound and UK stocks sink on latest twist in Brexit saga as housing market slowdown deepens.” The Telegraph 20/03/19
It certainly looks a gloomy outlook but the headlines above mainly relate to London.
Although prices are certainly falling in London, other parts of the UK seem to be holding steady.
The latest offering from the House Price Index offers a more upbeat picture showing a fairly level market moving into Spring 2019.
What commentators have to say…
Miles Shipside, at Rightmove, said to The Guardian, “As the clock ticks down towards the Brexit deadline it is natural human behaviour for more buyers to hesitate. The number of sales agreed by estate agents in February was 7% below the same period in 2018.”
Kai Logan at Bradleys in Devon, said that its actually a good time, signs are very positive, buyers have more choice, demand is high, people are buying, interest rates are low, mortgages are cheaper than renting – I’d buy now!
“Brexit isn’t having an impact with the banks in terms of what they will lend or on what terms,” said Richard Donnell, Research and Insight Director at Zoopla.
Paul Smith, CEO at Haart thinks a no deal Brexit would lead to a ‘short term blow’ for the country’s property market. ‘The most likely impact would be a slower market, with fewer transactions taking place as both buyers and sellers hit the brakes on their plans.”
Nick Leeming, Chairman, Jackson Stops: “It is frustrating that we are still unable to see the light at the end of this Brexit tunnel, however, we are still expecting a modest spring bounce. This will be aided by pent up demand from those looking to carry on with business as usual and we fully expect to see a flurry in the market once a deal has been done.
I think the key word at the moment is Hesitance. I too have noticed that people are more hesitant to move from one property to another. Valuing property daily, i speak to people who ask whether Brexit will affect their house price. It’s hard to answer but at this current moment in time, locally I can see that prices appear to be holding.
The market is still driven by low supply and high demand. If there is still not enough housing available then people will still be prepared to pay more to get onto or move across the property ladder.
Although in other parts of the country Brexit is affecting prices, Shropshire generally seems to be performing well.
My advice would be to ignore the news, keep calm and carry on. No matter how the market adjusts people will still need to move. What you may lose in value through a no deal Brexit as people predict, you will gain on your onward purchase.
See a house as a long term investment not a short term gain.
At Goodchilds we have had a record year so far and would love the opportunity to talk to your about your current house price. If you would like a free market appraisal, why not give us a call on 01952 701019.