Brexit, Brexit, Brexit! what has happened since the referendum vote in June 2016 to the property and mortgage market?…
Despite all the doom and gloom in the media, and the massive resources spent on going round in circles and talking about Brexit….. Property prices have increased nationally by 6.15% SOURCE: Nationwide House Price Index.
It’s a modest increase over the period BUT it does highlight that property prices are doing ok.
The mortgage market in my opinion is doing very well and has become even more reliant on expert advice from the broker market.
Here are 7 quick snippets of information on the property and mortgage market since the BREXIT vote:
- The Bank of England Base Rate has risen from 0.50% to 0.75%
- However, mortgage rates have improved with rates starting from around 1.19%
- Stamp duty was abolished up to £300,000 for first time buyers.
- First Time Buyer levels were at their highest earlier this year, since 2006… SOURCE: The Times
- Year on year 3 months average wage growth hits 3.8% in August 2019 SOURCE: Office National Statistics.
- ‘House price to income ratio’ for first time buyers has also improved since the referendum, SOURCE: Nationwide Building Society
- Our business has grown by over 34% over this period and expected to grow by a further 20% over the coming year
The buy-to-let market has suffered which is largely related to the tax surcharge on stamp duty land tax, and tougher rental stress test criteria set out by the regulator.
Interest rates and affordability are expected to remain very good for the next few years.
Over the coming years I believe many will choose to improve their current home and add space as opposed to move home.
If and when we BREXIT, with or without a deal we anticipate expanding our team to support you and keep up with the high demand for our expert mortgage advice.