Unless an extension is agreed, the withdrawal of the United Kingdom from the European Union is set to take place on the 29th March 2019. Parliament are currently voting on leaving the EU with or without a deal. Regardless of the outcome, the uncertainties of the public are at an all-time high.
The housing market is unquestionably one of those uncertainties. Since the referendum vote in 2016, house prices have plummeted in most areas of the UK except Scotland. However, transactional volumes (the number of property sales in any given month) have remained stagnant.
For first-time buyers, settling on a mortgage for a property most likely isn’t in your best interest. With the recent low confidence in the housing market, first time buyers are holding off to jump on the property ladder until market stabilisation. This is understandable as they will be new to the market/property industry and can be risk-averse.
Seasoned property owners
Seasoned property owners stand a much better chance of remaining stable through these uncertainties, specifically due to familiarity of the market. Additionally, those who own two or more properties have a much higher chance of absorbing the cost of losses if the market does decline.
Bank of England rate increase
There is low chance of a rate increase in 2019 as government would also like to help stabilise the market. Everyone has their own views on choosing fixed rate or variable rate mortgages so it might be a good option to lock the interest rate for next 5 years with fixed rates.
We’re here to help
If you’re looking to purchase a property, either as a first-time buyer or a seasoned property owner, we can assist you. Funding Hut offers free consultation and advice on the post-Brexit property landscape.
Give us a call today on 0203 900 0970 or email email@example.com.