What does Brexit mean for house prices?

Following the constant uncertainty regarding Brexit, we are all still unsure as to whether the UK will be leaving the European Union with or without a deal and what the terms of any deal may be.

The indecision has caused a great deal of economic uncertainty, including in the property market, where house price growth has slowed year on year and sales have dipped in recent months.

In light of this, industry experts have come together to give an insight into what could happen over the coming months to the property market.

In March 2016, average house prices had fallen to a low of £205,555, since then there has been a steady increase in average prices until last summer when they began to fall again. However, that figure has recovered in the past couple of months reaching the highest level since before the EU referendum took place (£232,710).

The year on year price increase was at a low of 0.35 per cent in England as of July. It is impossible to say whether this is as a result of Brexit or just a long-overdue market correction. It does, however, offer help to thousands of potential first-time buyers who feel they have been priced out the market in recent years.

The residential transaction volumes also displayed a year on year decrease with 86,240 transactions taking place in the year to July 2019, compared with 101,210 the year before. This appears to have recovered during the last month, with transaction volumes reaching 99,890.

With the uncertainty regarding Brexit, it is taking longer for people to sell their homes than in previous years. In January, the average time for a property to go under offer increased to 77 days, the highest on record.  The figure now sits around 62 days, which is still slower than in previous years.

Experts are warning buyers and homeowners not to panic or make any rash decisions.  Recent price drops mean that buyers could get a good deal, but for those wary of price crashes should remember that a property is a long term investment and prices will likely stabilise in future.

They are also urging homeowners to take advantage of the very low rates that are currently available but warn against jump into a fixed rate without considering the alternatives, as there are a number of flexible products that would leave the opportunity to remortgage if rates began to change.

For expert help and advice contact a member of our team today

Original Source: Which