Brexit officially happened on 31st January 2020, but we are still in the transitional period which will last till the end of the year. Negotiations take place in the upcoming months and this will determine a lot. Deal or no deal is a phrase being thrown around, but the outcome penultimately has a massive impact on future property values.
If the government can’t agree on a trade deal with the EU by the end of 2020 then we will be leaving the European Union with no deal. There is a lot of uncertainty surrounding this being our only option, including some statistics provided by an accountancy firm KPMG. They predicted that in September, house prices could drop by 6% following a no deal Brexit deal.
Whilst it is still very unclear as to what the actual outcome is going to be, if you’re able to take out a mortgage, then now could be a good time. As everyone is talking about Brexit, the interest rates are still low. If you do take a mortgage out in the upcoming months, you could consider a fixed-term mortgage so your payments are Brexit proof for the next few years.
In 2019 people were sitting tight. No-one was completely sure if it was best decision to sell, or if it was best to sit on their property, so there was somewhat of a stillness in the market. The more we learn and find out about us leaving the EU, the more clarity we will get on future house prices.
There are signs of growing confidence in the UK property market – in fact GTH has had a very start to 2020 with many instructions coming on to the market and a healthy supply of buyers.
With mortgage interest rates still being so low, it indicates that there is not likely to be a market crash. It is unlikely we will see any rise in mortgage rates anytime soon. If there was to be, then it would only be slight and nothing to cause any real concern with the property market.
Key points to take away:
1. Don’t always believe the media. These scary headlines are only there to make news; there are no real reasons to believe the market will fail.
2. Don’t be put off buying or selling during this period. The trend for the past 100 years has been at a consistent steady increase, so there is nothing to say this won’t continue after Brexit.
3. People won’t wait forever. Sooner or later people will get bored of waiting for Brexit to end and will act regardless of the circumstances. We are seeing this happening now.
Would you be interested in getting a valuation for your property? If so, contact your nearest GTH office and the team will be pleased to help you: