You will no doubt recall that following Brexit the ‘Remainers’ predicted that property prices would crash and we would be thrown into another era of property repossessions, negative equity and stagnant housing market. The foreboding predictions have not happened and whilst they may have been avoided in the short term, this does not mean we are out of the woods yet.
Data provided by HM Land Registry shows the volume of property sales has steadily increased between April 2016 and December 2016. Conversely, Savills has forecast that property sales will decrease by 16% in 2018.
As of February 2017 the average house price in the UK is £217,502. Property prices rose in February by 0.6% compared to the previous month, and risen by 5.8% compared to the previous year. It is predicted that property prices will remain steady for the short term but will increase in 5 years’ time.
The drop in the £ and the decrease in high value property prices has attracted overseas purchasers from America, India, Turkey and the Middle East who are looking to invest in properties in London over £5m.
Nevertheless, all is not rosy. Home ownership has fallen to a 30 year record low with 1 in 5 people now living in private rented accommodation. The lack of council and housing association properties has increased the private rental sector as well as driven up rent prices. The Government has raised the stamp duty on buy-to-let homes in an attempt to release more property onto the market for home ownership but the number of properties on the market remains low.
No-one knows for sure what is going to happen to the housing market when we leave the EU. Some argue there will be no effect on house prices because the reason why people sell and buy houses will remain the same e.g. relocation, upsizing/downsizing. Others say there could be an increase in house prices if Brexit negotiations are successful.
Andrew McPhillips, economist at the Yorkshire Building Society, said: “The biggest risk would be an adverse macroeconomic shock — particularly to employment — that would reduce demand for housing and the ability to repay existing mortgages.” In addition, if the base interest rate were to increase this may affect overall confidence in the housing market.
- Sale and purchases
- Freehold and leasehold
- Buy to let
- Property ownership arrangements
- Equity Release
- Shared ownership
- New builds
- Key workers
- Transfer of part
- Key workers
- Management company enquiries
- Lease extensions
- Help to buy
- Transfer of Equity
- Tenancy agreements