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1st November 2019
Market Trends Autumn 2019
Another Brexit deadline has passed and, unfortunately, we're no closer to knowing how leaving Europe will affect the market. We’ve made our predictions, but - at this point - we’ll have to wait and see.
The market and Brexit
Undoubtedly, we’re in uncharted waters. So, when it comes to buying or selling, what should you do?
Essentially, keep calm and carry on.
Despite Brexit uncertainty, the Bank of England base rate is still at 0.75% - a record low. This is even more impressive considering that in the 1980s, the rate was as high as 15%. It’s true that no one knows how the Bank of England will react after Brexit. However, it’s hard to imagine these rates could get any lower (we've written more about the BoE base rate and borrowing money here).
And that’s not the only financial incentive for buyers.
Despite the climate, borrowers can still get great deals on mortgages. Five-year deals are available at a fixed rate of 1.54% - this is incredibly low. However, we’ve seen fewer transactions than in previous years and prices have reduced slightly.
Source: https://www.plumplot.co.uk/Brighton-house-prices.html
But sellers shouldn’t feel too alarmed. Even if your house sells for less than you had expected, your purchase should cost proportionately less.
And Brexit or no Brexit, Brighton and Hove will always be a desirable place to live.
There’s little room for expansion with the Downs one side and the sea on the other, so it’s unlikely that the city will be significantly affected by reductions in price.
Lettings
Meanwhile, this lack of space for expansion has produced a very competitive lettings market. As university accommodation grows, allowing more students to stay on campus, many properties have seen increased rents. However, properties that are being looked after by landlords are still being snapped up quickly. But this isn’t the case for those that haven’t been so well maintained.
Interestingly - and for the first time since we can remember - there are still houses in multiple occupations (HMOs) left in Brighton and Hove. Currently - and at the start of the academic year - there are around 300 of these properties left.
Source: https://www.rightmove.co.uk/news/rental-price-tracker/
So whether you’re buying, selling or renting, the message is clear: don’t let Brexit stop you. If it’s the right time in your life to move - go for it.
