How has Brexit Affected the Housing Market?
Many property owners and buyers have been concerned by the uncertainty surrounding Brexit. With the nature of the UK’s future relationship with the European Union looking far from clear, people are asking lots of questions. For instance, how will Brexit affect house prices? And is now a good or bad time to sell or buy a new house? Let’s take a look at the stats to see how the property market is performing.
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Housing Market Performance Mixed since EU Referendum
According to the Royal Institution of Chartered Surveyors, newly agreed sales have been up and down since 2016 – the year of the EU membership referendum. The largest spike was caused in April 2016 by investors trying to complete purchases before the 3% stamp duty surcharge was implemented, while the largest dip occurred later in the year following the Brexit vote.
In 2018, however, there was an increase in newly agreed sales in England and Wales, with the number of sales agreed and prices reducing towards the end of the year, driven by growing Brexit uncertainty. However, it must be noted that there were actually more sales agreed at the end of 2018 (102,330) than in December 2017 (98,760).
Meanwhile, a separate analysis by consumer group Which? and Inside Conveyancing revealed that although newly agreed sales had decreased, average prices had not. Overall, the figures suggest that many people have chosen to wait until there is more certainty about Brexit before putting their home on the market.
Has Brexit Created a Buyer’s Market?
For those looking to buy, this has created an advantage, as it has caused house prices to decrease slightly. According to The Mortgage Broker, this has created a “buyers’ market”, partly because the fact mortgage rates are low right now is providing buyers with a further incentive to purchase.
Regardless of the factors affecting your decision to sell or buy, a property purchase itself is a long term investment, so the full impact of your decision needs to be considered. Whatever your decision, our Conveyancing Solicitors can provide you with quality expert advice.
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