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The Royal Institution of Chartered Surveyors (Rics) has released figures showing that confidence is returning to the housing market following the vote to leave the EU in June, and that as a result house prices are set to rise.
After the vote on June 23rd, Rics had forecast a sharp fall in house sales and house prices, with the view that members were more pessimistic than they were at any point since the 1990s.
Rics, which is seen as a key market indicator, has now forecast that as the shock of Brexit has receds we are looking forward to an annual 3.3% increase in house prices year-on-year over the next five years.
In London in particular, there have been more house price drops reported in comparison to the rest of the UK where prices have risen, particularly in the Midlands.
This rise in prices can be attributed to demand outstripping supply, with a record low number of properties on the market (reported in December 2015). In addition, the Bank of England’s cut in interest rates has helped to boost confidence in both buyers and sellers. Although borrowing costs are low, there is still some uncertainty on the effect that Brexit will have on the housing market and economy in the UK.
In August this year the number of property enquiries fell, which isn’t unusual given that the market tends to take a dip in this month more than any other.
The decline in the number of people buying property can also be attributed to the fall in buy-to-let investors following the stamp duty rise for property investors.
Your home may be repossessed if you do not keep up repayments on your mortgage.
If you would like more information on how Brexit may affect you, please contact Derngate Wealth today.