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What does Brexit mean for house prices?
| Author: Craig Bees | Published: 27th November 2018 10:55 |
What does Brexit mean for house prices?
As the UK begins the enormous task of negotiating its EU exit, many are questioning what will be the effects on the property market – are house prices likely to go up or down as Brexit negotiations are finalised?
Despite next March’s exit, it is still impossible to foresee the long-term impact and it will take a brave expert to make any long-term predictions. Losing momentum: reports such as those from Nationwide last summer suggested that the housing market is losing some momentum. The price of the average UK home fell for the third consecutive month – – the first time this has occurred since 2009 – and although average prices still increased by just over £4,300 compared to a year ago, the pace of growth eased to 2.1% from 2.6%, the slowest in almost four years.
Following the stamp duty 2014 changes property analysts suggested the upper end of the London market was starting to stall and we have seen this trend continue this year.
In addition, the 3% stamp duty surcharge for second homeowners, higher taxes for landlords and stringent affordability tests may also force prices down over time.
Analysts agree that the uncertainty caused by the EU Referendum result has affected buyer and seller confidence. Sellers may have to take a “leap of faith” that a meaningful reduction in their price expectations will lead to more interest among buyers.
Interest rates
Commentators are still reserving their judgement to make house price predictions but in the meantime, the housing shortage means demand remains high so prices will most likely continue to increase.
Experts agree that for a house price crash to occur, there would have to be a hike in interest rates and that doesn’t appear to be on the horizon. The triggering of Article 50 may make the Bank of England reluctant to increase interest rates, despite the recent increase in inflation.
This will preserve affordability and points to a low turnover market, with little upward or downward pressure on prices.
DON’T FORGET (if you missed our last column) that getting your property online before Christmas can potentially help you sell your property over the festive period.
Recent data shows a dramatic increase in visitors to property websites between Christmas and the New Year. There’s then a lull before a serious ‘peak’ in property searches in the early days of the New Year.
If you instruct us by the end of this week we can get it all sorted by Christmas – putting you in a great position for viewings in January.
We are Towcester’s longest established estate agent and the only local member of the Guild of Property Professionals.
If you have any queries drop me an e-mail and I will be happy to help.
Monthly draw: your chance to win a case of Italian wines (red/whites/mixed) or one month’s membership to Whittlebury Hall Leisure Club.
How To Enter: Every valuation and instruction for sale or rental between now and Thursday December 20 will be entered into the draw, the winners being notified by e-mail - and receiving a nice Christmas present too.
So if you’re thinking of selling or letting your property and want to win one of these great prizes on offer call (01327) 359164 and speak to our sales or lettings team.
Until next time.
Craig Bees, MD Bartram & Co
E-mail me at craigbees@bartramandco.co.uk
Visit our website www.bartramandco.co.uk and follow us on Twitter@bartramandcotow
Tel: (01327) 359164
Fax: (01327) 359166
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