Understanding the Housing Market, In Spite of Brexit
Brexit has seen more twists than an Alfred Hitchcock movie, and we’re still left wondering whodunit. After the latest extension, the question of when – or if – the UK will part ways with its European neighbours is one that is set to ramble on.
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While everyone might be getting a bit sick of the Big B Word, it’s almost impossible to ignore it. With a general election on the horizon, get ready to hear more about Brexit, as well as other policies that will be used in a battle for leadership.
Leaving the EU might seem like an all-encompassing burden on our lives, but take yourself away from headline-grabbing news and focus on the ground level – where most of us operate daily – and you will find that it’s not quite as impactful as you might think.
This is especially true of the UK housing market, where the show must go on – and it’s currently doing so in a prime-time spot.
If you’re thinking about selling your home, the idea of Brexit may make you feel somewhat reluctant about putting your property on the market. But it needn’t be The Brexit Show when it comes to selling and buying property. Plenty is going on in the UK housing market, in spite of Brexit.
Demand outstripping supply
Most people thought 2020 would usher in a Jetsons-style futuristic world, hovercrafts and all. And yet, here we are, still talking about Brexit.
So, so much Brexit.
It’s not all bad news, though – especially if you’re thinking of selling your home. Demand is currently outstripping supply in the UK. While there’s a bigger issue to discuss on why there aren’t enough homes available, sellers now find themselves in an enviable position.
Lack of supply is one of the reasons why buyers are taking their property searchers seriously. More transactions are completing because those left on the market are adamant about doing a deal. Such an attitude comes from their desire to find a new home in a landscape where there aren’t many available.
How low can you go?
Interest rates on mortgages have remained low over the past few years, with many predicting Brexit could keep them at the lower end of the scale. Whether you’re buying or selling with the intent to buy somewhere new, there are plenty of competitive mortgage deals out there.
Knowing that it’s easier to access favourable finance rates creates more of an appetite to find a new home. If it comes to a decision between low-interest mortgages and waiting for Brexit to conclude, there’s only going to be one winner.
Show me the money
Wage growth recently reached an 11-year high, with the employment rate at its highest since 1971. More earnings, coupled with low-interest rates, gives buyers a greater reason to find a new home, despite Brexit lingering in the background.
Mashroom COO, Naveen Jaspal, agrees, saying:
Recent market reports are showing that buyers are not concerned with Brexit and continue to purchase property. At mashroom, we are also experiencing a higher volume of agreed sales.
All indications point towards a sellers’ market with fewer properties available for sale and buyers continuing to purchase. Now really is the time to sell.
With wage growth up to 3.9%, buyers around the country have access to extra income that is helping them make decisions about purchasing a new place with more confidence.
A certain future amongst the indecision
Suddenly, Brexit looks like it’s being forced to take a back seat. The crux of the matter lies in the reasons people buy homes: if you’re planning to live somewhere for a sustained period – or maybe find your ‘forever home’ – buying in a Brexit market isn’t going to impact your decisions.