Brexit and the Housing Market: The Results Are In
Some of you may recall we had a referendum in June.
The question put to the electorate was:
Should the United Kingdom remain a member of the European Union or leave the European Union?
If you are just picking up the threads we can confirm a majority voted to leave the European Union. And, the Prime Minister resigned.
And well, let’s just say all we know, a few months down the line, is the new Prime Minister has assured us that Brexit means Brexit.
Excellent, so that’s clear.
Brexit and the Housing Market
In the days and weeks after the result, it’s fair to say the Housing Market went into shock.
Nobody likes uncertainty and it showed in new Conveyancing instructions we received.
Our Brexit Poll
We wanted to see the mist and gloom.
We wanted to find out in the aftermath of the Referendum, the immediate impact on the Housing Market and what may or may not lie ahead.
So we set up our Brexit poll and asked our favourite Estate Agents and Property Experts and Commentators for their views on 10 straightforward questions.
This was to help find out what was actually happening rather than what the media and newspapers in particular wanted us to believe what was going on.
Were we all doomed or did the Housing Market just receive superficial cuts?
The Poll was open for a couple of months and deals with mostly the immediate aftermath.
We’ve put the results in helpful graph form and we included some comments from the real people in the know.
So here goes…
1. How do you now feel about Brexit and the likely effect on your Estate Agency?
2. Have any chains broken and reason cited was specifically the result of the Brexit vote?
55% said YES
45% said NO
3. If yes, how many?
4. Has there been an effect on new instructions following Brexit?
5. Has there been the effect on new applicants registering following Brexit?
6. How optimistic are you for the Housing Market over the next 6 months?
Although our first question stated 46% of respondents are displeased by the Brexit result, exactly 46% are optimistic for the housing market over the next 6 months.
7. In your opinion will you see an increased number of distressed or forced sellers because of Brexit?
8. We also asked a final optional question “what single piece of advice would you give to anyone contemplating buying or selling at the moment?”
Some of the replies:
“Buyers – hold off, desperate sellers around the corner! Sellers – sell now while you can!”
“Appreciate that there is still a market, it’s just different to the market we had on 23rd June. If you are buying and selling, then the changes make little difference.”
“Ensure that the purchase/home is for at least five years so as to mitigate any market drops that are, I believe, likely.”
“Mortgage rates are excellent. Now is a good time to move!”
“I think the long-term fundamentals of the housing market remain the same. If you want to buy your first home and you find somewhere you like, go for it.”
“Just do it.”
We were worried about the Housing Market post-Brexit. And it seems we were not alone.
A couple of events have helped and may help steady the ship.
- A new Prime Minister was chosen pretty quickly and confidence restored.
- The Bank of England moved quickly to soothe the markets and reduced interest rates.
- Many have realised that Brexit is so far distant that they’ll carry on regardless.
- The Chancellor has said he may use the Autumn Statement in November to “reset” Britain’s economic policy. That may include encouragement for, in some form or other, the Housing Market.
Many in our Poll simply contended it was too early to tell the full effect of the Brexit vote on the Housing Market.
We’ll return to this subject when (and if?) we finally get to know what Brexit really does mean.
But, in the meantime, we would certainly encourage you to:
- Carry on if you are buying and selling simultaneously.
- If you are buying, ensure your move will be for the medium, and not short term, in case there is a market readjustment. There are great mortgage deals available at present.
- If you are just selling there really is no time like the present so long as you are realistic on your valuation.
- Speak to proper Estate Agents (avoid the colour purple and suspicious looking acronyms, for example) to give you the very latest buying and selling prospects in your area.
- If you need to budget for your legal fees when moving house click below on to our free Conveyancing Calculator.