Now that Britain has voted to leave the European Union, many all over the UK are left wondering what the Brexit means for them. Several key concerns have arisen; including what will Brexit do to the housing market. If you are planning on making a move or purchasing a new home what are some of the things that you need to consider post Brexit?
We don’t yet know what affect Brexit will have on property prices
First and foremost, it should be said that it is still too early to determine what kind of effect Brexit will have on property prices. We are not likely to see big changes for several years until Britain has completely extricated itself from the European community. The good news here is that you have some time to plan accordingly.
How will Brexit affect mortgage interest rates?
While there hasn’t been any official announcement yet that mortgage interest rates will rise, the Treasury Department has predicted that borrowing costs could increase to as high as 1.1 % if Britain left the EU but they also forecasted a fall in house prices of up to 18%. Other experts suggested declines anywhere from 5% to 15%. While declines do not bode well for sellers, they could mean that we are heading into a buyers’ market. It could be an excellent time to make a purchase, especially if you are a first time home buyer.
The flipside to this is that it could be much harder to get a mortgage; it is really hard to say but trends are showing in favour of buyers.
A good time for renters
But what if you aren’t looking to buy but are a renter? Well experts are predicting favourable environments for those looking to rent as well. Higher interest rates will mean a better market for tenants, providing lower more affordable rent for anyone seeking that option over purchasing. Another reason for favourable rental markets is simply if more people are shifting to purchasing homes. This shift takes some stress of the rental market; especially in high rent cities like London.
London isn’t the only UK city to expect change
London, being the most expensive city in the UK isn’t the only place that could see drastic change due to Brexit. Scotland could contribute to big changes as well. The question remains over whether or not Scotland will once again try and seek its own independence. With a significant 62% of Scots voting remain during the EU referendum, it does bring an interesting case for those who want to depart from the UK all together. Many consider Scottish independence being the best way to stay in the EU, but nobody knows what knock-on effect this will have in turn on the property market or wider economy.
Buy now and beat the next property boom
In recent years, Edinburgh has become a real estate hot spot, with many luxury apartments going up within the city. For those concerned about the future availability of mortgages, now could be the perfect time to invest in one of the many new-build apartments around the city in locations such as the trendy new Quartermile district.
Regardless of where you find yourself, renting or purchasing make sure to consult an expert before you make any big decisions. Housing options look different for each person and that’s a key element that should be factored before making any major moves. A professional can provide you with quality options and assist you in making the best decision for your household.
We simply cannot predict what is to come next
It has been hard to make sense of the after effects of Brexit because simply we cannot predict the future; and there is so much still up in the air. However, if you plan and prepare your finances accordingly you should be able to navigate the housing market relatively smoothly.