Posted: Friday, 19 August 2016 @ 12:51
In June, the UK voted to leave the EU in a landmark referendum – much to the shock and horror of economists across the globe. Before the vote there was much speculation about Brexit and the housing market, and there has been changes in the small time since the vote was announced. But what will happen once Article 50 is triggered and the UK actually leaves the European Union? When is the best time to buy or sell?
Changes in the housing market will affect people differently, but it’s especially important for homeowners wishing to sell. Should they put the property up for sale now, or wait? Will they end up losing money because of Brexit? If house prices fall, will this be good for first time buyers? We take a look at what the experts are saying.
Buyer Demand at Eight Year Low
A new survey from Rics (Royal Institution of Chartered Surveyors) has highlighted the impact of the Brexit vote. The Institution’s June report found that 45% more surveyors saw a fall in homes being put on the market that month – the sharpest fall since it started recording the data on it in 1998.
36% of surveyors also reported buyer inquiries falling, which is the worst recording since 2008.
No Market Slump
As a result of the shock Brexit vote and uncertainty in the market, house prices are expected to fall over the next few months. However, experts are saying that this won’t last long, and is being referred to as the ‘market slowing’ rather than a full on ‘market slump.’ As there is still a shortage of supply, it is believed that house prices will continue to rise over the coming years.
According to Halifax House Price Index, the most notable changes are happening in the capital. House prices in London stalled for the first time in four years in the run up to the referendum, but sales were up after the Brexit vote as investors took advantage of the weak pound. Six out of 12 regions saw no growth at all in the last three months, with London being one of them.
So the question remains: is now a good time to buy or sell? It is probably a much better time for buyers who want to bag a bargain. Now is an uncertain time to sell, especially in London, and you could want to wait a few years until the market has settled down. Why not extend your home or invest in some home improvements – you might love your new home so much you won’t have to move house anyway.