With the Conservatives now having a majority in Parliament, the housing market is set to face some exciting changes in 2020. Read on to find out how the new Government will impact you if you’re looking to buy, sell, let or rent a property…
Since the announcement for Brexit, many buyers and sellers have been waiting to see what will happen. But following the Conservative win, the promise of leaving the EU on 31 January 2020 is now a reality. So what happens now?
Well, Romans predicts there will be a “Brexit Bounce”, a small initial impact on property prices. This is reinforced by the predictions of some forecasters that interest rates will drop to 0.5%, thus reducing mortgage costs.
So if you want to sell your home, now is a good time to put your property on the market to capture as many of the new buyers as quickly as possible. Or, if you want to buy a new home, if you can find one over the coming weeks, you may be able to secure a bargain while prices have been subdued in the run up to Christmas. But move fast, as Romans feels demand will be high.
Looking forward, investors are likely to see more certainty across the property market, especially from a financial perspective. There is currently clarity on taxation and although landlords will still have to deal with the loss of mortgage interest relief and foreign investors will pay an additional 3% Stamp Duty in England, mortgage rates are likely to remain extremely competitive, which helps to keep overall costs down.
For tenants, some of the security offered by Labour and other parties is likely to be on its way when the results of the Section 21 consultation are published. The Conservatives also spoke about further guidance for tenants on rent rises during tenancies, even if they haven’t committed to full rent controls, as well as the planned introduction of ‘lifetime deposits’, which allow a deposit to be transferred from one home to another. The Conservatives have promised to “create a fairer rental market: if you’re a tenant, you will be protected from revenge evictions and rogue landlords, and if you’re one of the many good landlords, we will strengthen your rights of possession.”
It’s good news for first time buyers too; with the Help to Buy scheme due to end by 2023, Conservatives have vowed to sell 29,000 homes at a 30% market discount (for local people), as well as the creation of new long-term fixed rate mortgages, allowing property purchase with just a 5% deposit. Essentially, for those wanting to buy their first home, the Conservatives are committed to driving home ownership upwards, so expect a reasonable amount of help to secure your first home.
For second steppers and those looking to trade down, a more certain future for the property market means it should be easier to move home in 2020, with higher demand and low mortgage interest rates.
If you are unsure what to do in 2020 under the new government, pop into your local Romans branch or contact us online. We’ll explain what’s happening in your local property market and help you with your 2020 property decision.
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