Brexit. Business as Usual.
Riding the waves of uncertainty – how will the housing market respond to us leaving the EU?
Following last week’s vote to leave the European Union, we are all still a bit in the dark about the future of the housing market. We know from previous experience that there have always been ups and downs in the market as it responds to changes in the economy as a whole. How can we ride the waves of uncertainty until the dust settles and we can see more clearly what our options are?
In the Brighton coastal region prices have been rising over the past few years as it has become one of the most sought after areas of the country to live in. The signs are that this popularity is likely to continue, so prices may continue to rise, or there may be a readjustment – nobody knows at the moment.
What we do know is that historically house prices have always increased over time. There is likely to still be a high demand from first time buyers: a temporary drop in prices could be good news for them if they are able to get a mortgage and raise a deposit, or if the Government introduces more measures to help them.
In any case, demand for rented homes is still likely to remain high. The recent increase in Stamp Duty was unsettling for landlords and reduced the number buying to let as they saw their potential investment return go down. A drop in house prices could also be good news for them, offsetting the extra Stamp Duty cost and encouraging them to buy again.
While we don’t know for sure what will happen with the sales market, there may be a shift in the demographics of those buying and selling, and the rental market may benefit for a while. With an uncertain and changing market buyers and sellers, landlords and tenants need to make sure they have the most up to date and accurate information.
Local agents will know what is happening ‘on the ground’, be able to advise on different options, and be able to set realistic prices for their market. In addition an ‘online’ local agent, like Open House Brighton Coast will be able to do this at an affordable price, at a time when we need it most.