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2nd January 2019
Brexit negotiations are still in progress and there’s uncertainty on how it will affect the property market. We’ve taken a look at the current trends, and given our advice for 2019.
Property prices have dropped over the past few months. This means that for first time buyers, now is a great time to buy because house prices are at their lowest in recent times.
As well as cheaper property, borrowing money is still affordable, with the Bank of England base rate currently at 0.75%.
You may have read that mortgage rates could dramatically increase once we’re through Brexit. In reality, any increase in rates will be slow and steady, rising to a potential 5% in the next few years.
We need to remember that mortgage rates are still significantly cheaper in 2019 than the late 1980s, where rates hit 16%.
Graph credit: https://www.propertyinvestmentproject.co.uk/property-statistics/uk-interest-rate-history-graph/
People are waiting before deciding to sell. This is in the hope that house prices will rise and they can get more for the property.
Our advice is to be realistic with your asking price.
If you're selling your home for a lower price than you'd like, remember that the new property you buy will also be cheaper - meaning you can get more for your budget.
Accepting lower offers or valuations for your current home will attract more buyers. It also means you can sell your home quicker, rather than sitting stagnant at a more expensive price.
As shown below, the lower your asking price is, the more people you can attract. For example, people with a budget of £400k, may also look at homes costing £425k.
If you lowered your asking price from £450k, to £425k, you’d likely reach more potential buyers and sell your home more quickly.
Property prices in Brighton & Hove are more resilient as people will always need to move house. Brighton boasts the Sussex Downs, and the seaside, with an easy commuting route to London, making it incredibly desirable. It is a competitive market to buy in. If prices continue to lower, they are more than likely to bounce back at the same speed they dropped, as we have seen in previous recessions.
The rental market in Brighton & Hove is still strong as there is a high demand from renters. This means that landlords are still achieving good rental value for their properties.
However, we’ve seen a decrease in landlords buying to let over the past few years. Additional stamp duty and taxation have affected landlords across the board.
Whatever the case with Brexit, Maslen Estate Agents can help landlords achieve competitive rents through our trusted lettings service.