Now that the UK has had some breathing space to
get to grips with the recent EU Referendum vote, how has the property market
been affected so far?
The result on 24th June went in favour of Brexit,
leaving the country's future very much in uncharted territory.
Time will tell in terms of just what the
implications are from the outcome, but for now, we'll take a look at what the
initial impact has been on the property market.
What are the affects so far?
Our friends at Guild Property expect to see
"very different performances for residential and commercial property"
as a result of this outcome.
It seems that those with commercial properties in
particular may be the ones that are affected more significantly, as businesses
look to reduce the risk and costs with new ventures they have in mind. Lease
costs may well fall as owners, such as pension funds, try to prevent more empty
On the opposing side, those looking to get on the
property market for the first time may actually catch a bit of a break.
While house prices towards London rise over
£300,000 on average, the North East remains the region with the most affordable
homes in the UK. Following the recent vote, the North East has been the only
area to see no noticeable rise in prices.
Already, estate agents are reporting treble
instructions and 10% higher sales agreed since the referendum result, as
confidence starts to return.
We could see a price rise across the country as
demand outstrips supply however, although those developing larger projects may
stall and nudge prices up.
Guild Property also state: "Mortgage rates
have also fallen further, with two-year deals available at under 1%, and
remarkably 5 and 10 year fixed rates at under 2.5%."
What if you rent?
‘Buy to let’ has already started to pick up after
the Stamp Duty changes in March, while the pound sterling's slide may be
something that attracts greater foreign investment than first suggested.
To make your move that little less daunting,
don’t forget to check out Mansons’ homebuyers guide!
If you’ve got questions to ask regarding buying,
selling, renting or letting a property in the North East, don’t hesitate to
come and visit us or contact us at www.mansons.net