I have purposely held back from further comment since my NPpropertyBlog.co.uk update immediately after the shock result of the EU Referendum.
The fallout from the result, especially on social media, reminds me of the fallout after the last General Election where everyone was shocked by that result, especially after the initial exit polls.
Will Brexit have much of an impact on our LOCAL property market?
I have been asked this many times over the last few days. I genuinely think the answer will be as a result of how WE act. If people sit back and do nothing, as they are concerned about what is around the corner, property purchases could slow down.
If people wait to see if property prices drop to “bag themselves a bargain” this could result in the number of viewings dropping. People who try to buy at the bottom of the market inevitably lose out as if it were possible to accurately judge the top and bottom of markets there would be a lot more property millionaires in the UK than there are at the moment!
If viewings dry up this may mean people panic sell at a lower price than they need to. Sellers may be concerned that the initial drop in interest may be the start of prices falling so they may consider selling now, at a low price, just to avoid selling at an even lower price in the future.
The above are two basic examples of how the local market could suffer, not just post Brexit but as a result of any kind of uncertainty we may face in the UK.
What do I think will happen…?
This is not a Credit Crunch, this isn’t a recession. The fact that interest rates are at the lowest the have ever been, and are now unlikely to go up (some are even forecasting a cut) is the biggest factor.
Banks and Building Societies want to lend, they have targets to hit and are in competition with each other, which is great for a borrower. Most people buy a home to live in, if you can afford it do it! Why wouldn’t you? Because of Brexit…really??
The sooner you buy the sooner you are reducing your mortgage. If prices go up, down or stay the same over the next 25 years doesn’t really mean anything to a homeowner occupier. As long as the mortgage payment (slightly higher or lower) is made on time every month, if you don’t move or increase your term, you will own your property at the end of your initial mortgage term.
We live on an island, land is a finite resource, people are living longer than ever and not enough new homes are being built each year. Brexit doesn’t affect these facts. Add to this the cheapest mortgage rates ever and I just cant see the local market taking much of a hit.
The rental market is still booming, we have several applications for each good quality property we let. If potential homeowners don’t buy properties, guess what…landlords will! I don’t blame them, property investors make sure they keep buying whatever the market does or potentially could do.
The certainty is that people will always need somewhere to live. In the UK, and locally, most people want to own their own home, however, people’s attitude to renting is changing and it is becoming more and more popular.
Our phones, since Brexit, certainly don’t suggest that people aren’t looking at properties and we have tied up several sales since the result.
In summary..if you don’t buy the nice property that has caught your eye on rightmove.co.uk then somebody else will!
If anything causes a mini slow down in our local market it will be as a result of people being distracted by The Welsh Football Team’s fantastic run in the European Championship! COME ON WALES! 🙂
As ever please feel free to give me a call, or contact me via this site, if you have any property related queries.