So it’s almost a month since the UK officially left the EU, although we are now in a post-Brexit transition period until the end of the year. And the big question on everyone’s lips is what will Brexit mean for the housing market?
Whether you are a staunch remainer or avid leaver, the economic uncertainty caused by Brexit has undoubtedly affected the market, with house prices falling in some areas and a slowdown in sales throughout much of 2019.
However, December 2019 saw the highest number of property transactions since before the referendum, with sales up 6.8% year-on-year. Many are putting this down to Boris Johnson’s election win in December providing a window of stability for potential movers after a period of instability since the EU referendum, which had caused some to put off moving house.
The number of homes sold rose again in January to hit their highest in two and a half years and in a further sign that the housing market is picking up. Are buyers and sellers who played it safe now putting their plans in motion?
There seems to be a huge amount of pent-up demand across the country that sets to be unleashed on the market, which suggests are we in store for an active spring surge.
Negotiations will take place over the next few months to see whether the UK can reach a trade deal with the EU. So we won’t know the true impact of Brexit on the UK economy and house prices until this has been decided, but early signs suggest that Brexit is proving a positive contributor to the housing market and it is beginning to flourish once again.
The fact that borrowing costs are ultra-low gives people even more reason to buy and sell. There is also far more choice now available for buyers who do not tick the usual lending boxes, whether this be £1m plus mortgages, mortgages for those on a contract or freelancers, mortgages for the self-employed, ex-pats and a whole host of other factors.
So while there may well be more twists and turns to come in the Brexit saga, 2020 should see an end to the period of political uncertainty, with an opportunity for sellers to get their property on the market for a spring move unaffected by Brexit deadlines!
If you are thinking about moving house, re-mortgaging your property or perhaps looking to purchase a second home, now is a good time to look at your mortgage options. For a free mortgage consultation, contact me - Richard Bousfield on 01252 759233 or info@thesurreymortagebroker.co.uk.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.