03 Jan Brexit Property Uncertainty
We have seen the average house price of a property newly listed on the market has dropped by 0.2%. According to the online portal Rightmove, this is the first year on year fall since 2011. The Brexit property uncertainty seems to have taken effect the most in London, where prices are down annually at a rate of 2.4%. Over the past year, we have seen prices drop by £15’000 to £614,271.
We are seeing Brexit Property Uncertainty with the rollercoaster ride that is Brexit. We take a look at the property market and how is coping during these turbulent times.
It’s not all doom and gloom as there are some parts of the country that are still performing well, such as the east and west midlands that are averaging 4.05% increase in prices.
Lenders taking advantage of Brexit Property Uncertainty
These low prices could be an early Christmas present for potential buyers. We are seeing that buyers are still keen to buy properties however, they are stuck in the neverending cycle of needing to sell their own property before anyone would consider their offer.
According to miles from Right-move, ‘New sellers and their agents are reacting to market forces and lowering their pricing aspirations by more and sooner than usual,’
With last nights vote of no confidence not materialising will this help us to see some movement in the market or we will have to wait to see what happens if and when we leave the EU?
It seems that high street mortgage lenders are keen to push their products onto worried home buyers in order to stimulate business.
Lenders are offering lower figures than normal and this may be down to the fact that fewer people are looking to move. Intermediary Mortgage Lenders Association has revealed that the number of cases that mortgage brokers are handling has dropped by 10% between June & September 2018. This is the largest drop in applications since 2016. Mortgage Lenders are like any business and have a target to meet and make their money by lending the money out so this it is more than likely that this is why they are pushing better deals to potential customers. Due to this, mortgage rates have bared moved since before the Bank of England rates went up in August.
There really are some good deals out there, with Santander offering a fixed deal at 1.39% for two years and a fee of £1,499 based on a 60% loan to value. Sainsbury’s and Yorkshire also offering 1.39% and 1.38%.
Rachel Springall from Moneyfacts said ‘The mortgage market is still very much alive as lenders fight it out to not just entice new borrowers onto their books, but also retain existing customers who may be coming off their deal.’
‘We are entering a traditionally quieter time of year so lenders will need to do all that they can to work towards any end of year lending targets.’
‘Within the last week alone we have seen very small adjustments to fixed mortgage rates, so it’s clear to see it is starting to get a bit tighter for lenders to push rates lower.’
We are always interested to know what your thoughts are on Brexit Property Uncertainty and would love to know how it is affecting you and your house buying/selling experience.