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How will Brexit Impact the Property Market?

At the time of writing, it’s impossible to say how Brexit will impact the property market. All we can do is speculate as to what may happen, and hope that things don’t get too bad. For now, the markets aren’t looking too good, but this could be a temporary thing. If the markets continue this way, then we may be looking at some difficult times ahead:

Falling property prices

Property prices could fall, but this isn’t necessarily a good thing. If the economy stays in the position that it’s currently in, just a week after the referendum, then we’re in for a bit of a bad time. Those looking to buy a home, may find that they no longer have enough cash to afford one, even if property prices have fallen. This isn’t good news at all, as those who wish to buy a home, may have to stick to living where they currently are, even if it means staying at home with their parents for a little while longer.

Overseas investors may come in and buy property

This isn’t a bad thing at all, it just means that the properties are owned by someone else. It still means that the UK economy will benefit from the sale of the home, but only if those renting the property pay the money to someone who intends to spend the cash in the UK. At the time of writing those living in the UK can still do business with those in the EU, but we may have to wait until January 2017 to see what real difference it will make.

Some European construction workers may have to re-think about living in the UK
Fingers crossed that those who come from Europe to work in the UK, can still work here. If those who come from EU countries are told they can no longer work here, or Brexit means working here is difficult, we may see a real decline in the number of properties that are built. This is because there will be fewer people to work on the construction sites, which means houses, and business properties won’t spring up quite so fast. This means there could be fewer affordable homes, and that’s never good for the economy.

Fewer houses will be bought

Even if our EU friends are told that can rightfully stay in the UK and work here (They do contribute to the economy after all), people may buy fewer homes because it’s likely they will be more careful with their cash. When the property market isn’t doing so well, fewer people will want to part with their hard earned cash, even if house prices are lower. After all, if the value of a home is likely to fall by a few thousand pounds, is there any point in buying it in the first place? What’s more is mortgage rates may rise, as could other rates, that just make buying and owning a home a little riskier than usual.

Demand for rental accommodation may fall

Because a lot of people may be out of pocket, they may fail to go ahead and rent a property they were thinking of renting otherwise. This is likely to result in increased rents as landlords and landladies fail to find enough tenants for all of their homes. If the mortgage has already been paid off on the property, then it may do no harm to keep the rent as it is, but that all depends on how much the cost of living rises by.

If the demand for rental accommodation falls, it could result in the homes in question being put up for sale. The only trouble with this is that not everyone will want to buy a new home if the market crashes. What’s more is those who currently live in rented accommodation, may find that their rental bills increase as the cost of living increases.

Waiting for things to get back on track

Some people are not worried about the state of the market. They have seen it all before, and know that huge events can have an impact on the exchange rate, and how much money people spend. Things may get back on track after a few weeks, or even a few months, but I guess that all depends on how the EU reacts to many British voters wanting to pull out of the European Union. Only time will tell as to how Brexit will impact the property market, and all we can do is wait and see.

For now, it may be wise to hold off on that property purchase, until you know for sure that the value of the home you’re thinking of buying, does not dramatically decrease.
Play it safe, regularly check how the markets are doing, and only buy a home when you think it’s safe to do so.

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House Sales & The Property Market 2016: What to expect

By Susan Jones – Quick house sale expert

When it comes to predicting what 2016 may hold for the property market and how this will effect house sales, all we can do is compare it to last years statistics and determine if the current market is likely to perform in the same way. The fact of the matter is that house prices were starting to rise last year, and because the UK is looking to be leaving the European Union, again, it’s likely that house prices will continue to rise.

Fewer affordable homes built

Even thought the UK government told us they had planned to build more affordable homes, they have failed to do so. It’s fair to say that it’s hard to believe what many politicians tells us, and it’s also fair to say that they often have an excuse when asked why they didn’t achieve what they had promised us. If fewer affordable homes are built, it means that more and more people will fail to get onto the property ladder, which means they won’t ever know what it feels like to own a home. But this isn’t necessarily a bad thing, as it looks as though there’s likely to be less of a demand for home.

House prices falling?

Unfortunately, even though there has been a drop in demand for homes, especially in the weeks leading up to the referendum, it’s thought that house prices may not fall after all. Even though it was predicted that they will, over all, they may not. Ok, so some homes may be sold for a little less than they would have been otherwise, but when we look at all of the homes in the UK, the average price is thought to be rising.

More overseas buyers

Those who live overseas are now increasing their bids on homes in the UK. This is because they have seen the market change after Brexit, and found that if they pay in Euros they have a much. better exchange rate.

This means for example that some house prices in the UK have dropped by about £26,000. Let’s face it, if you’re looking to buy a 3 bedroom home somewhere, and just down the road is a 4 bedroom home for not very much more (Or even about the same price), you’re going to opt for that one aren’t you? Overseas buyers could start to make a larger impact on the UK’s property market than we thought they would during the first half of the year.

It would be nice to think that the owners of those homes could contribute to the UK economy even further by living in the UK, but this isn’t always guaranteed. Overseas investors could spend hundreds of thousands of pounds on properties all over the UK, but never actually set foot inside it. This means that aside from purchasing the property, they’re not really contributing any more to the UK economy, unless they decide to buy even more properties.

If they do, who knows, many countries around the world could end up getting the UK property market out of trouble? And who are we to moan about it? A good UK property market could mean good house prices, and a better overall economy. Time will tell.

Brexit and the demand for homes

At the time of writing, those living in the UK are not buying property quickly as they usually would. The property marked has seen a big drop in demand for homes overall, as people want to see what happens to it. This means they are keeping their hard earned cash in their bank accounts, while they wait and see if it’s worth their while spending their money on a home that they will have to pay for over a few decades. As soon as the economy starts to level off, it’s likely that we will see a bit more action in the property market, but only time will tell.

It was originally thought that house prices would continue to rise through-out 2016, and even though some are, some house prices are falling. The majority are rising, and although that could be a good thing for those who have recently invested, the market is still fragile, and it really is hard to know what to expect.

Wait and see what happens

My advice is to wait and see what the housing market does, how it performs, and what direction it seems to be moving in. We can expect things to get back to normal in a few months’ time, and we can expect to see promises of more affordable homes, but do not get your hopes up. The UK market could still be badly affected by Brexit, and it could still flounder, even more so than it already is. If you want to buy a home, wait for a better time, and your waiting may pay off.