Brexit has been one of the most controversial political decisions in the UK this year. But how has the decision affected the property market?
What Brexit Means
The UK’s vote to leave the European Union has left property owners and first time buyers uncertain about the property market. Brexit has caused a drop in the value of the pound, leaving sellers uneasy. They cannot afford to cut their property price further to make a sale, and are reluctantly left waiting until the market has improved. This has decreased work for estate agents.
Statistics revealed house price growth slowed to a three-year low in July 2016. The number of days to sell a property has been increasing substantially in London and the South East in recent months. These figures differ greatly from the increased activity in the first half of the year, due to the rush before the stamp duty increase in April, when owners of second properties rushed to complete transactions to avoid a higher level of tax.
Is This Bad for First Time Buyers?
Despite there being fewer properties coming on to the market, Brexit has caused a slowdown in rising prices so there is hope for first time buyers.
Governor Mark Carney announced the decision to cut interest rates from 0.5% to 0.25% for the first time since the financial crisis in 2009, meaning the cost of lending has also reduced, encouraging more first time buyers to come to buy.
If you are a first time buyer and would like some help buying your first home, please give us a call for a chat on 01273 407 970.
by Shavir Deo