We’ve been trying to avoid writing anything political this month, but in this instance it’s somewhat unavoidable. Following the referendum, some of our property and conveyancing clients have expressed uncertainty about how the economic climate will affect purchases and sales post-Brexit. And while we can’t be certain about what the future holds for Britain’s property market, we can make some educated predictions and provide some general advice on buying and selling property in the coming year.
“Should I act now or put everything on hold?”
It’s unlikely that any sudden changes will occur until Article 50 is triggered. And even then, it will take at least a further two years to complete the process, meaning any major differences to house prices and mortgage rates will hopefully be gradual.
If you’ve already exchanged contracts on a sale, it’s not advisable to pull out of the transaction now as you will incur hefty penalty fees.
“How will the referendum result affect house prices and mortgages?”
According to mortgage experts, the Bank of England has signalled that the monetary policy may ease over the summer to provide a buffer for lenders, meaning that interest rates may drop even further in the short term.
Given the timescale of the process involved in leaving the EU, house prices are unlikely to change drastically in the immediate future.
As a buyer, if you have a sizeable deposit you should still be in a strong position in the market.
For first time buyers and those with small deposits, there’s still time to take advantage of the Help to Buy programme – which the Government may choose to extend as a way of easing the transition.
If the market does slow down, lenders may become more competitive, giving you more options, even with a smaller deposit.
In all cases, it’s important to ensure you can cover a potential rise in interest rates. Lenders currently carry out checks to ensure that borrowers are able to cover increases of up to 7%, and new requirements may well come into effect in the future.
“Where can I get further advice on buying or selling property?”
Start with a free online conveyancing quote from Frances Lindsay & Co to help you begin your property search with expert advice. Our friendly property solicitors have over 50 years’ experience and can help you make a practical plan for buying, selling, or investing. We cover the whole of the Thames Valley, including Beaconsfield, Gerrards Cross, Henley, High Wycombe, Maidenhead, Marlow and Windsor.brexit property market, free online conveyancing quote, property and conveyancing, property and conveyancing Thames Valley