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5 Jul 2016

In a few months will we be wondering what the fuss was all about?

Author: Peter Kavanagh

A shock result for some, the desired result for the majority, and certainly a period of uncertainty for the economy, but is Brexit a reason to delay your move?

Post-Brexit and people are still moving

“I strongly believe that in six months, if not before, we’ll be looking back and wondering what the fuss was all about” comments Peter Kavanagh, Managing Director at Romans. “The reasons you need to move now or in the future are very unlikely to have changed.”

Throughout the UK, and in the South East in particular, domestic buyers drive the market and their motivations to move will not have been affected by Brexit. Babies are still being born, couples are still getting married and divorced, people still need to upsize, downsize and relocate due to jobs or to get into specific school catchment areas.

“Understandably, buyers who don’t have an immediate reason to move may sit back for a few weeks and see what, if anything, happens. However, most of our customers have real reasons to move sooner rather than later, and don’t want to lose their dream home or delay their move because of a bit of uncertainty.”

If the media’s scaremongering is to be believed, the London property market could be adversely affected due to its reliance on foreign investment. However interestingly, according to some reports there has been uplift in investment from outside of the EU as the strength of the pound weakens and London property becomes a more attractive investment globally.

“Growing families and aspiring first time buyers certainly won’t sit back and wait in case something changes” adds Peter.

The local marketplace is still very robust and people are continuing to buy, sell, let and rent property. In fact, Romans New Homes had one of their most successful weekends of the year immediately following the EU Referendum results, with over £6 million pounds worth of property being sold!

Furthermore, out of the 900 current property sales agreed with Romans, only 20 were cancelled during the week post-Brexit. This is only marginally more than can be expected during a normal period.

Will Brexit cause property prices to fall?

According to a recent report from Which?, the Consumers’ Association, “with the on-going lack of supply in the market and the possibility of construction rates slowing down, house prices could remain relatively steady.”

Vincent Courtney, Managing Director of Residential Sales at Romans, explains: “House prices will only fall if the balance of supply and demand changes. We recorded an 8% increase in users visiting the week after Brexit compared to the week before, and exactly the same number of customers setting up online accounts to assist with property searches and sales.

“Plus, with interest rates now set to remain very low for even longer there are some really incredible mortgage deals available – possibly the best we will see in our lifetimes, attracting more people to move sooner rather than later.”

Just this week HSBC released its ‘cheapest ever’ mortgage, with interest rates fixed at 1% for two years, and if uncertainty is a concern TSB have just launched a five year fixed rate at only 2.25% and a 10 year fixed rate at only 2.89%.

Is property still a safe investment?

Investors may pause for thought, but there is no reason for them not to purchase buy-to-lets, as Michael Cook, Lettings Managing Director at Romans explains: “There’s certainly more volatility in stocks and shares than the property market which has seen the best investment return over the last 30 years.

“With demand continuing to exceed supply economists are predicting on-going house price rises and strong rental yield growth over the next five to 10 years, attracting more investors to purchase buy-to-let properties.”

With close to 30 years’ experience in the local property market, Romans is best placed to offer you expert advice before you make your next move. Contact the team at your local branch to find out more on 01344 985 666.

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