So is it really business as usual for the property market?
Six weeks on and what affect is Brexit having on the property market?
Well according to our dedicated Sales Progression Unit, who look after the sales from your offer being accepted through to completion, not much!
Across all of our branches only 2 buyers pulled out as a result of Brexit and in both cases our agents managed to find new buyers and the sales are going through. So that means all sales are going or have gone through Brexit or no Brexit.
A recent report from Rightmove shows that the price of property coming to market has fallen by 0.9% this month, which is within usual expectations for the run-up to the summer holiday season. Buyer demand in the two weeks since the surprise referendum result is consistent with 2014 although down on 2015:
Rightmove also said that most agents report market momentum continuing due to shortage of suitable property for sale, buyers fearful of missing out on scarce choice, and affordability and availability of low mortgage rates. Sellers seem undeterred; when compared to the same period last year, the two weeks pre-referendum saw the number of new properties coming to market down by 8%, and the two weeks post-referendum saw them up by 6%.
When you step back from it all and look at the UK housing market we still have a housing crisis, because we still have less houses than people who need housing and not because your house is worth next to nothing as the media would have you believe.
Fundamentally the reason people buy a new house hasn’t changed; if your house is too big or too small, you want your children to go a good school or you are moving in with your partner it really doesn’t matter whether we are in or out of the EU.
Let’s look at the positive, now is a really good time to negotiate a mortgage, for example HSBC are offering a 2 years fixed special fee saver with interest for 0.99% and 10 years for 2.79% to some of their customers. With a maximum LTV (loan to value) of 65%. All banks want to lend, because lending is down at the moment and they are offering better deals.
There isn’t much point waiting to change your life just in case the interest rate drops next month; if it does not all banks will pass it on and if you want to be in for Christmas then don’t wait to see if we push the button…or not!