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.