How will Brexit affect the value of your home or rental property?
Whether you voted to leave or stay, Brexit is beginning to take it's toll on the UK housing market. Which ever way you look at it, we're facing uncertain times; not helped by the fallout from the latest historic events at Westminster.
So, should you be concerned? And could Brexit affect your property investment plans? Let's look at the statistics…
To start with, according to Rightmove, average UK property prices dropped by £5,222 or 1.7% in November with a similar fall forecast for December. These latest statistics represent the largest month-on-month fall since 2012.
But it's not all doom and gloom. Rightmove's figures are skewed towards the London property market and, outside of London, there are areas reporting increases in property values.
If you look at the figures over a longer period, specifically since article 50 was triggered, the UK’s house prices have risen by 8.13 per cent on average (from £215,078 to £232,554), according to latest ONS UK House Price Index report.
Add to that reports by Zoopla that 55% of consumers are still expecting property prices to increase in 2019, there is still confidence in the market.
A recent survey of industry experts also revealed a cautiously positive outlook for 2019. Whilst most expect some short-term volatility, non are expecting a price crash, more a 'softening' of the market.
Well, the simple fact is, that the property market has always been susceptible to cycles. It is not unusual for the property market to go up and down over time. Typically, once it’s been down, it comes back even stronger, and then the cycle repeats itself.
Confident buyers and investors see a market downturn as an opportunity to get a bargain, giving them the opportunity to gain more when property prices go back up again.
So, should you buy or sell now, or wait until the outcome of Brexit is more certain?
That really is up to you. If you need to move, have found the perfect property at the right price and are confident about your finances, there's no reason not to proceed.
Regardless of how you decide to proceed, bear in mind that buying a property is, for most, about securing a home or long term rental income. The property market is pretty resilient, and as long as you’re not looking to buy and then sell immediately, houses tend to survive the bumps in the road.
Please note: This article does not represent investment advice. When buying or selling a property you should seek independent advice. If you have a specific property that you are interested in buying or selling, please contact us to discuss how we could help you.