Now that the dust has started to settle on the results of the EU referendum, what are the lasting results post Brexit for the UK property market? We ask Quick Move Now’s managing director, Danny Luke, some of your key questions.
Ultimately, do you think leaving the EU will be a good or bad thing for the UK property market?
Long term, the UK property market will prevail; people still need somewhere to live and there is still a national property shortage, but in the short term we’re in for a rocky road.
What do you think will happen to the UK property market in the short term?
I would expect to see a price readjustment, which would see property prices fall by around five percent. I would also expect to see more sales falling through and time on market increasing, as buyers, mortgage providers and surveyors all become more nervous.
Should homeowners planning to buy/move in the next 12 months still do so, or hold off?
If you have a genuine need to move, do so, if you don’t, don’t. Any drop in house prices will be across the entire property market, so your onward move is likely to be as affected as the property you’re selling. If you’re a first time buyer it might be wise to hold off for a few months to see what happens, but of course it’s worth remembering that when prices do drop, there’s likely to be increased competition for already limited housing stock, so if you find your dream property it may be worth moving forward with the sale while the market is quiet.
Should property investors keep investing, sit tight or start clearing their portfolios?
Investors are having a tough time of it at the moment. Things were already getting more difficult for them, in terms of legislation, increased stamp duty etc. before the referendum, so falling house prices are likely to make things even more difficult. We were already starting to see a trend of property investors trying to get out of the market and sell off their properties, so that trend may well increase, but on the other hand, investors need to put their money somewhere, and if another recession were to hit, as some experts are predicting, they may feel safer investing in bricks and mortar rather than volatile stock markets.