Perhaps this is not a comment you might expect to hear, but let’s look at why this might be the case.
Though the uncertainty brought on by Brexit has resulted in initial concern amongst investors, developers and others working within the sector, there are a number of facts that show these concerns are waning.
Asking prices on homes have increased slightly but generally remain flat according to the Office for National Statistics Report.
The August 2019 report states that the average house price in England increased by a small 0.7% over the year to June 2019, but generally remains steady.
Now is an appealing time to purchase property, rather than when spiralling prices could put new homes out of reach for many buyers.
Additionally, Rightmove’s latest housing price index indicates that all regions in the UK saw a year on year rise in the number of sales agreed over the last month, with overall sales numbers up by 6.1% on the same period in 2018.
This shows that there is still confidence amongst buyers that long term owning property is a preferred option to renting. See Right Move.
The number of sales did vary per area, with the North East seeing an increase of 13.6% annually.
The East of England saw a rise of 12.7%, and Yorkshire and the Humber seeing the number of sales agreed, increasing by 10.1%.
These figures suggest the UK property market shows no signs of slowing down in spite of plans to leave the EU.
Why the pre-Brexit sales spree?
Although prospective buyers have become familiar with approaching Brexit deadlines, this one may seem more definite and therefore buyers and sellers more anxious to ‘seal the deal’ on properties.
There is only so long families or first-time buyers can delay their home purchases in the hope of political certainty, and with house prices remaining steady, now is becoming an increasingly appealing time to invest in the property market.
Many UK residents are pressing ahead with purchase decisions in order to provide themselves with some long term security.
Additionally, there may be an increased temptation for buyers since many vendors at this moment in time are happy to accept slightly lower prices, if it means they can get a deal confirmed as quickly as possible in light of the ongoing Brexit uncertainty.
Although nothing has been confirmed, there have been suggestions that Boris Johnson was considering switching the liability from buyer to seller in what would have been the most radical overhaul of the system for decades.
However, Chancellor Sajid Javid took to Twitter over the weekend to dispel rumours that this could be the case.
There does however appear to be potential for a degree of change around the amount of tax paid on property transactions, including the stamp duty tax on properties.
If this does materialise, we will potentially see more buyers being able to purchase now rather than wait until they have the capital needed to supply a deposit and pay the tax.
Another advantage Brexit brings to the housing market is that large authority backed deals will be able to proceed much quicker if EU barriers currently restricting state aid rules and procurement are loosened.
Buyers are looking beyond Brexit and taking advantage of softening prices and slightly lower prices among sellers in the hope that long term they may be securing a bargain at this time.
It remains to be seen exactly what outcome Brexit brings to the property market but is fair to say that even with the undoubted uncertainty there are still opportunities for buyers.
If you are thinking about investing in property development during this time Please call 01825 749721 or contact us. We may be able to offer you a good deal on your finance. There are no brokers fees as we lend our own money.