What do we know?
Let’s start with what we know is certain: The UK will leave Europe on 31 October 2019. It looks increasingly likely that this will take place without an agreement with the European Union. Which? reports that: “Property sales have fallen by 16.5% year on year and rumours of a base rate cut before December could create further confusion for people weighing up whether to move house or remortgage.”
A buyer’s market?
Last month, the Office for Budget Responsibility predicted that a no-deal Brexit would lead to house prices falling by almost 10% by mid-2021. Whilst house prices are following their usual seasonal pattern, house prices fell more sharply than normal last summer as early Brexit deadlines loomed closer. David Blake, Which? mortgage expert, says: ‘‘Recent price drops in some regions mean that it’s becoming more of a buyers’ market, so you might be able to get a good deal. Besides, buying a property should generally be regarded as a long-term investment and, even if there is a short-term price drop, house prices will probably stabilise in the future.”
The scarcity rule
Something that will slow the decrease in house prices is stock availability. Housing supply within the market is dropping as vendors also wait to see what will happen. Buying for the long term seems to be a safer option as the property market is likely to stabilise over time. The scarcity rule could also affect landlords. They are also facing uncertain times as they have the responsibility of implementing the Right To Rent policy as well as anticipating what post-Brexit immigration policy will look like, (affecting demand for property).
Life Goes On
“Whilst there are still many unknowns, life goes on!” says Jason Dyer of JTM Homes. “Mortgage advisors will be able to give options considering the extremely low interest rates at present and the options between fixed rate mortgages and flexible options should rates increase. Whilst people are understandably hesitant about such big uncertainty, change is happening to everyone. Families are growing, new job opportunities are arriving and new areas are waiting to be explored thanks to downsizing, for example. These changes won’t necessarily wait for Brexit to be clarified.”
If you are considering when would be the best time for you to buy, sell or simply move, talk to the team at JTM Homes. We are experts in the north London property market and here to answer any queries you have.