Buying A Home During Brexit

With Brexit mere days away, it’s probably a topic you’ve heard ENOUGH about already…but when it comes to the property market, and buying your first home it’s good to know the in’s and out’s, so I hope my research will help…

Are people selling properties?

Post-general-election, property asking prices in the UK have increased by 2.3% (according to Which). The average price is now £306,810! This pushed 65,000 more people to put their home on the market and at that increase who can blame them?

But are there any buyers?

In comparison to last year’s figures, sales have increased by 7.4% which I’d say is a solid YES to potential buyers.

WHAT happened last Brexit deadline day?

In the build-up to 31st October 2019, the rate of growth in the UK was 1.01% in June 2019 and picked up to 1.26% closer to the deadline. This means, despite the coming changes, people were still buying and selling property - which is a good indicator that you shouldn’t let Brexit put you off your search! You might be able to grab a bargain as people try to sell before we leave the EU.

Will House Prices go up in 2020?

With a return of stability to the market, with more people selling and more sales agreed, there's a good chance prices will start to climb again. There isn’t any indication that these increases will be large, even the ‘property experts’ have been fairly subdued about their predictions for the coming year. From what I can tell, the prediction for change is around a 2% increase. As with the rest of its impacts, how we Brexit will have an impact on the property market and we will only really know what will happen as it ‘happens’!

There are a few things to look out for, to get a good ‘investment’ house for years to come, one being the area. Is the local high street booming, or are there tons of empty shop windows? Even better, if new businesses are taking off this could be a sign of property prices on the rise! As the area improves, the value also tends to improve.

It’s also good to look at where the council are spending their money. If it is on the areas close to the potential property (the roads are in good shape and everything looks clean and tidy) that’s a good sign.

Have a look at the market in your area, using tools like Rightmove and Zoopla to track property prices. In some areas, recent price drops mean that it is a ‘buyer’s market’ (great for first-time buyers!) and in others, it’s the opposite.

Will anything else change?

On March 11, the Budget will give us some more information about how first-time buyers could be affected. This could be in changes in Stamp Duty (the fees you pay on the purchase of a property over £125,000), or Help-To-Buy Schemes may become more beneficial for first-time buyers.

What about Mortgages?

There are different type of mortgages, one of these is called a ‘fixed rate’ which means you are tied into paying the same interest rate regardless of what happens politically. The benefit of a fixed rate is that no matter what happens, good or bad, you are paying the same rate. This can be good if the mortgage rates are low, but if you are a risk-taker you might want to consider other options, in case the interest rates fall in your favour!

As the market has slowed, there have been fewer mortgages taken out and lenders are having to be more competitive. Meaning, more great mortgage deals are available and lenders are becoming more and more flexible.

Ultimately, a good mortgage advisor will be about to explain all the options to you, in order for you to choose the best option for you.

So, what should I do?

Unfortunately, I can’t predict the future or give any confirmed guidance...I already bought Number One and we don’t plan on moving very soon…so, what I am saying is you have to make your own decisions. Go with your gut! 

On one hand, why put your life on hold for what is unknown, on the other, the market might take off after a decision/deal/no deal has been made.

When buying a property, always buy with a long-term plan rather than a short-term gain. Buy somewhere that isn’t over-stretching you, but if you can, has enough bedrooms to contain a growing family/number of pets/hobbies! Speaking of overstretching, remember council tax and living costs will need to be factored into the long-term plan.

Look for ways to add value, to avoid any short term changes in the market, this blog post might help!