Getting on for two months since Brexit has the housing market crashed or is it all business as usual?
Well, it’s interesting the media like to jump on anything that signals drama. There are estate agents and mortgage brokers up and down the country putting a brave face on it. What is the reality of the latest economic twist that seems set to challenge the Britain economy.
Well predominantly there is not a lot yet that signals the impact of Brexit on the housing market . There has been the latest scaremongering from certain camps. There have even been some reported drops in house prices . But does this signal anything that we should be worried about?
It’s early in the post-Brexit game. There are many negotiations that need to take place before we understand our place in relation to the European Union and indeed the rest of the world.
There are people out looking to buy properties but few that seem to want to sell. It’s that time of year when Brits have been jetting off in search of sangria and sunshine. There are few that would expect and dramatic upturn in property prices during the holiday months in the UK. The real test will be seeing the volume of housing transaction come the Autumn.
Of course, there is a direct relation between the number of properties that come to market and the number of mortgages that are required to fund them. Not all mortgages are related to purchases but a sizable chunk of course are linked. There are probably many brokers out there now scrambling for their back-book of old customers as the search to secure remortgage business.
And why not with the bank of England’s base rate reduction there are many borrowers out there who could lower their interest rates and thus their monthly repayments. If you have been sitting on a lenders standard variable rate for sometime now might be a very good time to check what else is out there.
The true measure of the Brexit on the housing market will be when everyone is back from holiday and those looking to sell come to the market.