Should I wait to buy because of Brexit?
15th October 2018
On pretty much every appointment I’ve been on of late people have asked what my thoughts are on Brexit and whether the market has suffered or will suffer because of it. It is certainly a question that is difficult to answer at the moment.
Traditionally October is a time where prices increase a little. This has still being the case but, according to Rightmove, only by an average of 1%, which is the lowest October increase since 2010. I do believe though that the fantastic summer and cracking World Cup we’ve had has affected peoples’ moods and minds have not necessarily been on buying property. A decrease in demand means prices won’t increase as much. So the top and bottom of it is that I can’t say with any real certainly whether Brexit has had an impact on things! Who can though?
Depending on whom you listen or what you read, house prices could increase, stay the same or go the other way once this Brexit mess is sorted, but what is new there? Historically house prices have always gone up and down. (see below) They did in the late 70’s and 80’s and more recently the recession in 2008 and as far as I’m aware they always will.
What I would suggest is instead of worrying about what you have no control over (Brexit, house prices, football results) I’d look at what you can control. Look at where your income comes from and ask yourself if your job is going to be effected by the outcome of the Brexit negotiations. If your job will be safe then go for it.
If you want to increase your quality of life, be closer to those popular schools or family, provide yourself with a better commute to work or that much needed extra bedroom, providing you have the intention of living there long enough to ride out any ups and downs, then what is stopping you buying a property now? Nothing. Apart from someone else getting there first!
If you are contemplating buying for the first time then now is definitely a good time. Rightmove have reported a small monthly price fall of 0.1% for properties with one or two bedrooms. This is the usual market for both first-time buyers and buy-to-let investors, but with the government using the tax system to help first-time buyers by giving them stamp duty free status up to £300,000 and are deterring landlords by levying an additional 3% stamp duty, aspiring first time buyers have a great opportunity this autumn.
Thanks for reading.