What impact will the triggering of Article 50, and the start of formal Brexit negotiations, have on the property market?
The FT has reported that Google searches ‘How will Brexit affect the property market’ have outranked other post-Brexit concerns, such as sterling and the economy. That nicely demonstrates our national obsession (and I Am The Agent’s) with property!
It could be argued that now that the worst has happened, and Article 50 has been triggered, the uncertainty has now been removed and there will be a further boost of stability in the housing market. This is, after all, a market that relies heavily on confidence.
Fionnuala Earley, who is the Chief Economist at Countrywide, has said that ‘The expectation, pre-referendum, that house prices would collapse was very wide of the mark. House prices are still rising across the UK and continue to grow in London, which is arguably more sensitive to Brexit. But, over the medium term, it’s the effect of the outcome of negotiations on the UK's economic performance – particularly jobs that will determine the effect on housing market prices and activity.’
It's likely that purchasers in the capital will be most cautious in the immediate future, given the previous sustained 10-year boom relative to growth in earnings.
We already had stability in the mortgage market. There is no indication that lending rates will change and banks are keen to lend and are currently offering some interesting mortgage products and this is boasted by the help to buy scheme. At present there is no indication of a raise in interest rates.
As negotiations continue, we will see if there is any effect on employment, and any rise in unemployment will have a knock-on effect on borrowing.
For the time being, it would appear it’s business as usual for the housing market, but watch this space, I Am The Agent will be keeping their finger on the pulse and updating you along the way.
Our recent experience here at I Am the Agent is continued growth, as always if properties are priced sensibly and showcased well with pro photos and floorplans, there is no reason why a purchaser should not be secured in a reasonably short timescale. Some properties have recently been sold within days of being marketed. Our super IATA Essential sales package at just £399INC VAT, offers free pro photos, so the property is shown to best advantage. You can take a look at our sales packages on our website. Remember you pay a one off, fixed fee, compared to the percentage that traditional estate agents will charge. Our packages are very competitively priced and you can see our prices compared to Purplebricks, Emoov, Yopa and other online estate agents in our handy online guide featured in our blog.
You can see the full FT report about Article 50 and the property market here.
Courtesy of FT, Evening Standard & Countrywide