Are you feeling nervous about the property market since that historic vote a couple of months ago? What’s happened since then, and the evidence so far that things are settling down, should go some way toward reassuring you that things are not as bad as some in the media would have us believe.
Estate agents, property buyers and mortgage lenders all see positive moves, which is good news for everyone thinking of buying or with a house to sell. Here are the main thoughts to consider:
Buyers, Find Motivated Sellers
The most motivated sellers are those who need to sell, as opposed to those who simply think moving might be nice if they can get a good deal. The latter will hold out for a better price, while motivated, or distressed, sellers are more inclined to accept a reasonable offer when it comes their way.
In the prime market especially, leading estate agents Savills noted that many sellers have already reassessed their price expectations. If you’re in the buying market, now is a good time to actively seek out potentials and start making offers.
Take Advantage of a Newly Buoyant Market
There is good news for sellers too, so it’s not all one sided in favour of buyers. Professional property buyers have noticed an upsurge in interest in the prime property market from overseas buyers who see UK property as a good investment given the current low value of the pound.
In other market sectors too, estate agents have noted an increase in property sales. Some speculate that this could simply be the property market returning to normal following the hiccup back in April when higher stamp duty stalled some transactions. Others see it as an encouraging sign that Brexit won’t have too big an impact as time goes on.
New Mortgage Deals
Following the cut in interest to 0.25 percent, many banks are passing on the saving to customers, while some are increasing their rates on tracker products for new customers.
Fixed rate mortgages offer some good deals at the moment, with many lenders offering historically low rates on longer term deals, for instance those covering ten years. Long term fixed rates such as those have historically been unpopular, but may become desirable again as the future following the Brexit vote makes people seek stability wherever they can find it.
As always when shopping for a mortgage, whether first time or on a remortgage, it pays to shop around or use an independent mortgage broker. There are many different fixed rate deals depending on borrowing amount, fixed term length, and deposit levels.
Take Heart From History
If you’re still wary of entering the property market following the referendum vote, it may help to look back to the financial crisis of 2008.
In many ways the housing market climate was similar then to what we’re seeing now. However, once the initial storm had passed (which it is also now starting to do as the shock of the EU vote subsides) there was a new flurry of activity in house sales following a cut in interest rates in 2009, just as there is now.
The current uncertainty may have very different causes, but many of the outcomes are the same.
Nobody can say with certainty exactly how things will shake down in the near (or distant) future. What we can say is that so far this year, property sales overall are healthy, and in June they were nationally 2.7 times higher than in June 2015.
In short, while future predictions are hazy, the hard evidence of what’s happening at street level supports consumer confidence.