Two months since the UK voted to leave the EU, we’ve sat down with our Managing Director, Mark Hobbs, to discuss the changes we have seen in this short period, and what it means for the average Brit.
Buying a House Post-Brexit
Mark believes that the financial measures The Bank of England, Government and UK lenders put in place as a result of the vote will make the housing market more attractive to first time buyers. Despite initial concern due to the uncertainty of what would happen to the value of the pound and consequently the housing market, he explains,
“Now the dust has begun to settle, consumer confidence has returned," commented Mark Hobbs.
“The recent cut in interest rates for the first time in seven years has left homeowners with tracker or variable rate mortgages with lower monthly payments whilst lenders are competing to attract first time buyers by offering a range of competitive fixed rate mortgages aimed at encouraging them to make their move onto the property ladder.”
After the result of the Brexit vote, our branches did see a small immediate reduction in the number of conveyancing cases opened. However, we did experience an increased number of enquiries from people looking to purchase their first home and saw increased contact from those looking to remortgage with the aim of securing a better deal.
“There could be a number of different factors behind this trend,” explained Mark Hobbs,
“including first time buyers combining the benefits of the governments’ Help to Buy Schemes with the low interest rates, and a decrease in the number of active landlords and investors purchasing properties due to the changes in the Stamp Duty charges earlier this year thereby increasing the choice of properties available. At the other end of the market, we have been instructed on the sale and purchase of two properties in Cardiff both valued in excess of £1m.”
Concluding, Mr Hobbs said,
“Whilst it is still far too early to understand the full implications of the Brexit vote on the UK’s housing market, the immediate forecasts of widespread economic instability have not had the negative effect anticipated by some, instead it has provided new opportunities for those wanting to get onto the property market and others securing better deals. It will be interesting to see if this trend continues in the long term once the full implication of Brexit is known.”
Speak to a Qualified Property Solicitor at Howells
Should I buy a house post-Brexit? If you’re considering purchasing, selling or remortgaging a property and would like to learn more about the influence Brexit has had on the conveyancing sector, please to contact our friendly and approachable teams by calling 0808 178 2773.
