The never-ending Brexit saga is still going on, and on, and on… It’s continuing to drag the Property Market down with little increase in demand from Mortgage Advisors and sales expectations weakening
Stephen Kerrigan, the Mortgage Advisor for Mortgages Remortgages in Doncaster has mentioned that a Brexit-related uncertainty is having an effect on buyers’ and sellers’ decisions to delay property transactions. He also said:
“Expectations for house sales and mortgages have deteriorated in August, while the last month of the summer, also it saw a demand from new First-Time Buyers flatlining after several months of growth.”
It is hard to get away from the shadow being cast over the housing market by the Brexit story. However, a number of new properties coming on the market in August was more or less flat once again.
It is reported that the average British Person are as apprehensive about selling their property, which is about 39% as they are about buying a house, again which is about 46%. All this is in the run up to Brexit as the UK is yet to find out the fate of the divorce from the European Union by the 31st January 2020, not a perfect or smooth start to a new decade is it?
Looking forward, the net balance of 23% of Mortgage Brokers expected house sales to dip rather than a increase in the next couple of months of 2019. Although, a net 12% did expect property prices to increase rather than fall over the next year. The UK’s largest Mortgage Lender, Halifax, had a house price index reveal house process to increase just 0.3% between July and August of 2019, and just 1.8% on August 2018.
The bank said prices being propped up due to a shortage of properties on the market, with homeowners staying put in the face of Brexit Uncertainty. There was 'evidence of both buyers and sellers exercising some caution', with 'ongoing uncertainty continuing to weigh on consumer sentiment'.
Nationwide's own latest index found prices crept up just 0.6 per cent last month, with Mortgages Remortgages Advisor Stephen Kerrigan remarking:
“Surveyors report that new buyer inquiries have increased a little, though key consumer confidence indicator remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable.”
The Fact that almost as many people are being apprehensive about selling their property as they are about buying is a bit surprising, as it would have been expected that the concerns to be related to a house price drop due to a Post-Brexit. It’s a general uncertainty and a ‘wait-and-see’ mindset.
Whatever it is either way, it is required that we don’t fear over a No-Deal Brexit, however, the fate is still unknown. But it is suspected that there is a significant degree of hidden pent-up demand in the Property Market that are waiting to be unleashed as people wait to see the outcome, we can only wait to find out ourselves.
Stephen Kerrigan says, “The only certainty is… uncertainty”. If that’s a bit confusing for you, it means that when you’re making any decisions, you have to factor in the chance of substantive change. If we are leaving, whenever that is of course, then we could leave with or without a deal! With how the debate in parliament is going it is more than likely we will leave with a no-deal.
Businesses in the UK have already endured more than three years of Brexit Uncertainty, but as the third deadline to leave the European Union zooms by, local businesses in Doncaster, South Yorkshire have been left to grapple with a profoundly unpredictable domestic political situations that will further erode business investment.
People of Doncaster and the Yorkshire regions have been cautiously optimistic that current Prime Minister, Boris Johnson would have removed the immediate threat of a disorderly divorce with the European Union. However, we just need to wait until next year now. A completed deal on Brexit, even one that harmed the economy by erecting new trade barriers between Britain and its largest export market, would have provided businesses with some of the policy certainty they have been craving. That, in turn, might have encouraged CEOs to start spending more money on equipment, factory upgrades and expansions that have been delayed because of uncertainty over Brexit.
At the moment, there’s nothing we can do. Clearly Brexit however, is likely to be one of the major factors impacting interest rates, foreign exchange rates and the strength of the UK’s economic growth, all of which can have a knock-on effect for your job security and house prices, mortgages and savings to rates and more. There just doesn’t seem to have any agreement on either way.
Stephen Kerrigan also comments:
“To complicate it even further, this isn’t just about the practical outcome of Brexit itself, it’s about the prediction of the practical outcome of this entire annoying saga. Property Markets are moving based on the sentiment. Whether rightly or wrongly, the markets don’t like Brexit themselves, and they are uncertainty seeing a large drop in the value of the pound when the referendum result was announced. This is closely moving towards a no-deal, the weaker the pound gets, which helps exports, but pushes up the prices of many of the things we pay for – and demand weakens, which can impact house prices.”
It is likely the more we lose the final situation, and the less close the UK's future relationship with the EU, the worse the markets will react in the short term. Then after a while the practical effect itself takes over. Rather than us trying to second-guess economic shifts, it is best to focus on your own personal finances, which are more controllable and predictable, if you’re worried why not try the Money Makeover from Martin Lewis, as this can help with any financial issues you may have.