Look at the UK real estate market and how is it handling Brexit
With only weeks since Britain's departure from the EU, Brexit reports are hitting the headlines with mixed information about the UK housing market
19:08 21 February 2021
That made people confused and in a state of flux, those wanting to buy or sell properties are asking Leaders’ or property experts: “Is now the perfect time to move house?”
Just alone in this week estate comparison site Rightmove reports that, amid Brexit uncertainty, it has observed that the standard selling price of properties that are new to the market have dropped by 0.2% - the first fall at this period of the year since the year 2010. Though, a month back Rightmove said it had encountered a “pre-Brexit buying spree with agreed sales up to 6.1%” year on year.
At the exact time, the building society Nationwide indicates there was a “little change in UK house price growth in August”, while the National Association of Estate Agents (NAEA) implies that several house hunters are on the increase as possible buyers look for ways complete sales pre-Brexit”.
The main reason behind the differing views, explains by Kevin Shaw, the Managing Director of Residential Sales at Leaders, he said that some Brits are taking up a “see what happens” mindset about the Brexit. And this is leading them to hold off far from buying or selling.
On the other side of it, the NAEA has broadcasted that some view the Brexit deadline as a catalyst to move immediately, while the property they want to buy is readily available. Exceedingly low mortgage rates and increased digital advertising spending also are encouraging potential buyers that the property they wish to buy is of good value.
Kevin also mentioned that “Some properties are auctioning almost immediately and securing a good price tag, especially when buyers are competing to secure a home. Though others are quietly taking a little while to sell, mostly when they are priced higher than what buyers are willing or ready to commit to.”
What effect is Brexit having on the housing market?
One thing we all know of that is constant about the property market is that people or customers will always need to move, whether we're gaining a smooth Brexit or not. Changes in personal conditions, for example like getting married, having a newborn baby or you simply need more space as your kids to grow up, are always going to be reasons to buying and selling of property.
Looking towards the market activity in autumn and beyond, Kevin expects one among the two scenarios. "Is that the recent ‘bounce back’ will possibly continue up until Brexit - and even into the festive period like Christmas, as long as those who are keen to move while they have certainly will be joined by those who have maybe possibly held off for a while, but now desperately have to move due to personal conditions.”
He concludes this is even more likely to happen if the latter have viewed properties they would have loved to buy being sold recently. “if by any chance another house or property that is of big interests to them comes out into the market, this time around they're worried not to miss out, particularly with the added motive that they can lock in historically low-cost financing.“
In areas that have already experienced a flurry of activity over the summertime, though, things could weigh down. . For customers, this may help result in more desirable prices, while sellers would feel reassured of a buyers’ commitment and there will be a lower possibility of them withdrawing once a deal has been agreed.