IARP conveys that Brexit will bode well for first-time home buyers.
As Brexit looms in the uncertain future, UK property has fallen victim to the political and economic uncertainty surrounding it. Housing reports have shown a decline in house prices across the entire country–with areas in the more prosperous regions in England, such as the capital of the South-East being affected the most. And, back in September, Mark Carney, the Governor of the Bank of England, warned that house prices could fall by up to a third if there is a no-deal Brexit.
However, it is not all negative, as International Association of Real Estate Professionals (IARP) explains that there are some indicators that now, or at least in the short term, there are great opportunities to purchase property, either as an investment or buying your previously unattainable dream home. House prices may be out of reach for many but banks are making it easier for first-time buyers to get on the property ladder by offering the lowest mortgage rates since records began in 1995. There is no doubt that by jumping on the bandwagon while interest rates are low is an excellent time to buy, as your initial monthly repayments will follow suit. Moreover, with enhanced competition now being faced by mortgage providers, there are some incredibly attractive deals to be had.
Kate Faulkner, housing expert and founder of propertychecklists.co.uk, says: ‘We’ve definitely seen a stagnation in the market over the last year in areas such as London, the South and East (which had all overheated) and this slowdown has spread to other areas over the last few months. ‘Buyers are holding back in the hope that prices will fall. But it’s not only demand that’s dropping – supply is, too, with many people battening down the hatches until we have a clearer picture of what’s going to happen. ‘This can limit the likelihood of decreasing house prices, but also mean that few move, as there’s little choice on the market for would-be sellers. ‘I don’t think buyers should be put off by fears of a house price crash as long as they mitigate the risks. If you bought a property now, even if it did drop in value in the short term, the market would probably have corrected itself by the time you wanted to move (assuming you stayed there for at least five years).
One of the most frustrating aspects to the ongoing Brexit negotiations is uncertainty. No matter what industry is being discussed, people can be much better prepared when they know what the future holds. This is in stark contrast to the current state of play, as we are still in the dark as to how the UK’s exit will pan out.