15 months ago, our great Nation voted to leave the EU. Whatever your voting choice, it’s undeniable that Brexit raised concerns over whether the property market would suffer. Some experts even predicted another property market crash as a result of Brexit proceedings causing financial uncertainty.
So, 15 months on, are we seeing a buoyant market or has the desire to buy property dwindled? I’m pleased to report that house prices have remained steady and even modestly risen since the leave vote. Great news and a real testament to the British public and their desire to own a home.
Why is there news of fewer buyers in the market? You might have noticed articles claiming that there are fewer buyers in the market. While this is true, the reduction is largely because there are fewer landlords willing to purchase a property. They have been put off by tax changes which mean landlords can claim less tax relief combined with the 3% stamp duty surcharge.
So Brexit isn’t to blame here!
What do fewer landlords mean for average homebuyers? The lack of landlords in the market is positive for first-time buyers and movers because there is less competition. This is especially true for more affordable properties which tend to be favoured purchases for landlords. So first time buyers may have noticed more choice and opportunity without competing with landlords.
Local Property Market. The appetite to ‘own your own home’ remains strong in the South East, particularly here on the Sussex Coast. Over the summer months, we broke our record level of business twice which is evidence that the mortgage and property market remains resilient.
Not only that, interest rates are still very low which typically makes mortgage repayments more affordable. This opens up the prospect of home ownership to a wider pool of first-time buyers. All positive news for the property market.
So while Brexit proceedings haven’t formally been actioned yet, there’s no early evidence that it will be detrimental to the UK housing market… We’ll keep watching closely.