BREXIT - What effect will this have on house prices ?

The real truth is that nobody really knows, everyone is speculating or exaggerating ! The property market does quieten down when there is a general election or has a small blip when interest rates rise but given the continuing problem with supply there really is an expectation that prices will only go one way over the long term even if the market quietens down over a little of Brexit scaremongering.

Some buyers are naturally less confident and will want to sit it out until the market adjust post-brexit but the simple reality is that there are not enough new homes being built or existing homes to go around, so once the uncertainty is over the market is likely to resume afresh after possibly a light breather.

For others Brexit will simply not be an issue as people get on with their day to day lives and move because they need to.  I have seen people who have sold in the past thinking they could buy back in a “couple” of years later after prices fall, who now over 10 years later cannot get back on to the ladder. Property is not a short term investment especially given the cost of trading in an out of ownership.

There is no doubt that Brexit has already had an impact on the property market with many adopting a wait-and-see approach until the final deal has been made. As March 2019 and a final decision edges closer, many people are wondering whether they should take advantage of the current situation and buy or trade up, while house prices have subsided. On the other hand, some people are conscious that a hard Brexit could see the housing market slow down and are trying to decide whether now is a good time to sell. 

What is important to keep in mind is that value or price only becomes important when you sell or re-mortgage. There are less properties being sold, transactions are down but this is having the effect of keeping prices at a good level as there is often a real lack of choice for home movers.   Even if there is a slow down or a breather around the time we exit then this is likely to be short lived.

If you are looking for a property or thinking of selling contact Katie Griffin on 01364 652652 for professional advice.