Brexit? Where does that leave us now? Well with a lot of uncertainty in terms of the property market. UK markets were significantly rocked by the Brexit vote, so we want to know where our opportunities lie, is it a good time for landlords to invest in todays current economical climate?
You’ll be glad to know that experts say that the housing market is starting to settle. After the initial shock of the Brexit vote, Simon Rubinsohn, Rics chief economist, said: 'There are clear signs that the housing market is settling down, after the initial surprise of the outcome to the EU referendum." Uncertainty within the property market is to be expected in the coming months, with small dips in the market arising, but not enough to move into negative territory. However, this could benefit landlords who are looking to invest in more properties in the market. For a short period of time, landlords will gain greater buying power, allowing you to negotiate lower prices when investing in a property. So arguably, Brexit is creating greater market conditions to invest in.
So will the property market stall? The answer is, no. A recent survey from the Royal Institution of Chartered Surveyors claimed that house prices will rise 3.3 per cent a year on average for the next five years, "This remains lower than at the start of the year when surveyors expected prices to rise by 4 per cent a year." As a consequence, the property market will not fall significantly, helping to keep the housing market intact and robust. Furthermore, potential buyers and investors could possibly see an easing on monetary policies in the coming months, with possible interest rates being cut. This has the potential to positively impact mortgage costs, giving landlords the opportunity to experience better deals and let's face it everyone loves a good deal, especially when it comes down to property.
Still not convinced now is the time to buy? Maybe this will change your mind! Right now, borrowers are enjoying the lowest mortgage rates available in the two-year, five-year and ten-year fixed rate brackets respectively. With the average two-year fixed rate falling from 2.68pc to just 2.48pc in the last year alone. Although, industry experts predict this won’t last far past 2018, it is certainly a positive aspect of the property market that thus far stands unaffected by Brexit.
Top Tip: Do your homework! Brexit is far less likely to affect the potential re-sale or rental value of a property, than the local amenities, future development plans and proximity to cities will.
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