Brexit and Impact on Market
With Brexit fast approaching one way or another, there is a lot of uncertainty in the air especially concerning the housing market.
To help you try to understand and possibly make a decision as to whether or not to sell your property I have been doing some research and reading various online articles and here are the highlights of some commentary courtesy of Which magazine which I believe sums it up really well.
“Whether you’re a staunch Remainer or avid Brexiteer, there’s no denying that the UK’s impending exit from the EU is causing property market jitters.
So, what does all this mean for house prices and the property market, and what impact has the vote to leave the EU already made.
Taking a long look back, house price growth plummeted following the referendum in June 2016; then September 2018 Bank of England governor Mark Carney warned that a no-deal Brexit could send house prices tumbling by a third. But plenty has happened between those two events and indeed since September.
What’s Happened to House Prices Since the Brexit Vote?
House prices did stagnate for a while following the referendum in June 2016. This could well have been down to the usual pattern of prices growing in spring and plateauing over summer, which we also saw in 2017.
But with Brexit looming ever closer, house prices suffered a bigger post-summer dip than usual in 2018, dropping from a peak of £232,797 in August to £230,776.
As you can see the rate of the house price growth plummeted in the year after the referendum everywhere in the UK except Scotland. It has continued to decrease in England ever since.
What’s the Pre-Brexit Market Like for Sellers?
Commonly used measures of the market are stock per branch and time to sell.
Time to sell has gone up month- by- month and year-on-year recently. Stock per branch was also up year – on – year, from 42 in January 2018 to 45 in January 2019.
Brexit House Price Predictions: What Do the Experts Think?
David Blake of Which? Says: “The political situation may be in turmoil but it’s important that buyers and homeowner don’t panic or make any rash decisions.
I’m sure many people are waiting until we know more about whether the UK with leave with a deal, but this could go on a while and it’s tough putting your life on hold for an unknown”.
Kate Faulkner a housing expert says “We’ve definitely seen a stagnation in the market over the last year in areas such as London and this slowdown has spread to other areas over the last few months.
Buyers are holding back in the hope that prices will fall. But it’s not only demand that’s dropping – supply is, too, with many people battening down the hatches until we have a clearer picture of what’s going to happen.
I don’t think buyers should be put off by fears of a house price crash as long as they mitigate the risks. If you bought a property now, even if it did drop in value in the short term, the market would probably have corrected itself by the time you wanted to move (assuming you wanted to stay at least five years).
There is a lot to take in especially as we head ever closer to Brexit deal or deal and I hope this has helped.
If you would like any further information, get in touch with Philip Ellis Estate Agents Manchester today.