Brexit, Brexit, Brexit
In the week that Boris Johnson became Prime Minister and Brexit has apparently been assured by the end of October, what could this mean for the housing market.
As estate agents it’s hard to know where prices will go but one major factor that will have an effect on house prices is the amount of transactions taking place. I think it’s fair to say the more people that are looking to move home, the higher prices can potentially go, it’s basic supply and demand. If however, homeowners are happy sitting where they are, then prices naturally should start to cool off. On every market appraisal we have been out to over the last couple of years, the word “Brexit” has come up at last once, but many sellers have gone on to move home and many buyers have purchased these properties.
People will always need to move from property to property, whether this be for schools, family, jobs etc. So it’s not hard to believe that a lot of people are just ignoring what Brexit may bring in relation to house prices. In truth, prices may drop, but if you’re not going to move for the next 5-10 years then it’s probably not going to have any effect on you. If you’re thinking of moving, I personally believe now is the time. The word uncertainty is thrown about a lot but in my first hand experience with the current market, I would say there is lots of certainty. There are buyers out there looking when you are priced correctly and people will want to view your home if you present it in the right way.
Mr Johnson has already proposed switching stamp duty from buyer to seller which could get the market moving even more. If you don’t have to pay an additional tax when buying then it frees up lots of additional money. This could be used to plug the gap on a purchase up the ladder but won’t really do much to help first time buyers as they will not be paying any stamp duty on the first £300,000 of a first time purchase anyway. What this will do is get the top end of the market moving. If you need to go up the ladder, the price for stamp duty can be outrageous but if you paying what would likely be a smaller rate on the sale of your cheaper property, you should come out on top. Only time will tell what’s in store for Britain’s housing market…