Selling Post Brexit
Pause for thought or go ahead with house sale?
Latest data from the Royal Institute of Chartered Surveyors (Rics) published on August 11, revealed that both prices and activity in the three months to the end of July slowed down noticeably. So, here is what selling in a post Brexit world may be like.
In a few areas, including in East Anglia house prices actually fell slightly.
But the Surveyors’ predictions are that the Brexit referendum effects are likely to be short-lived and prices and activity should start to pick up again within the next year along with modest price growth.
What factors are influencing housing market activity post Brexit?
Firstly, while there is still a significant shortage of housing in the UK and new construction is at a low ebb, there is still going to be a significant demand as life will not stop dead and, among other things, people will still need to relocate for work or because of growing families.
Secondly, demand may well be boosted by the August Bank of England interest rate cuts which could feed through into lower mortgage interest rates and possibly easier mortgage availability.
So for those who have been contemplating whether or not to put their house on the market post-referendum the advice is “keep calm and don’t panic”.
There is no reason to withdraw a house already on the market, particularly if the owner has a pressing reason to sell.
Equally, while interest rates are low may be a good time for potential buyers to act. While the market is slow there may also be more room for negotiating on price.
However, to get a feel for your local property market whether buying or selling it is a good idea to continue to do the research.
Don’t stop going for viewings if you’re looking to buy. It will give you a more accurate idea of what is on offer and at what asking prices. Keeping an eye on prices and availability is also something for vendors to do.
Talk to a trusted estate agent as they will have the most up to date knowledge of the local housing market conditions in the area.
As ever, it is a good idea to talk to a mortgage advisor to find out what deals are available for your particular circumstances and to be careful not to borrow the maximum you can afford now, especially on a variable rate mortgage. If interest rates rise, as they will eventually have to, paying the mortgage would then become more expensive.
Basically, regardless of the outcome of the referendum, life will go on!