With recent Brexit affairs causing further suspicion within the housing market, aspiring home owners are still left speculating the risk surrounding home-buying in the UK.
The question still stands – is now a good time to buy a home in the UK?
The answer is: Yes.
For those looking to sell their home, the ball isn’t quite in your court just yet. The effect that Brexit is having on the UK housing market is unavoidable and it can’t be ignored. The capital of England and the South East have seen a price fall of 5% and there has been a significant drop in new properties listed for sale. There has been 20% fewer homes put on the market this year, in comparison to 2018, showing that there may be a few hurdles to jump for home sellers for the rest of 2019.
However, this is a selective statistic from one area of the UK, therefore it does not represent the situation of each individual area. Various locations are in fact seeing a wave of healthy numbers in the property market, primarily in the Midlands and the North East of England, as records show a ‘modest’ price growth.
If the UK eventually exits the EU without a coherent deal, London will remain as the most affected area, along with Northern Ireland; these two places are heavily reliant on the UK-EU trading system
Elaborating on this, expert accountants at KPMG have predicted a house price drop of around 5-6% for areas across the UK, while London and Northern Ireland could see a fall as great as 7%.
However, if Brexit goes through with a fixed deal in place, there could be a potential house price rise by roughly 1.3%, making house buying a cost effective opportunity for 2020.
With the recent political uproar sparking concern for home buyers in the UK, experts have spoken out to advise on the situation.
Kate Faulkner has explained that there is little reason to hold off on buying a new property, and that the best course of action would be to continue as usual.
This ‘wait and see’ approach is delaying the process for no reason other than to hold back in the case of a potential price drop. Faulkner stresses that no matter why you’re planning on buying a new house, you should not let Brexit delay your situation any further.
Kate Faulkner said: ‘As ever with property, for me it’s less about worrying about house price rises and falls as you can’t control them. It’s more about whether you can afford to get on the ladder now or if your dream home is available, especially when so few properties are for sale. If house prices fall, you may lose your job, split up with a partner or the home you wanted may have already sold, so you’ll miss out buying altogether. It’s best in my view to move when the time is right for you, your family and your personal financial circumstances.’
Of course, because of additional personal factors, it is still a good idea to stay wary of Brexit’s effect on the housing market. It’s recommended that you speak to your lender about your mortgage situation and the possibilities of a price drop in order to allow you the peace of mind by clarifying all of your options.
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