Brexit is good news!
I’m sorry to write this article as I’m sure you are sick to death of Brexit news. I tried my best to avoid it entirely, but I thought this article from the Guardian was unusually optimistic on the subject. It also brought up some interesting points. As we all now know we’ve got an extension before a decision has to be made for Brexit. This article shows how it may not actually be a bad thing!
Last month the average UK property price went up by 1.1%.
This article credits this too a slight boost in sentiment caused by the short period of certainty the extension has created. There has been an increase in demand as people try to take advantage of the relatively static property prices. In conjunction with this slight rise. There has been a decrease in the transaction times for properties down to 67 days. For those wondering there are 197 days until Halloween (Brexit crunch time). So, plenty of time to get some deals done before the market makes any significant changes.
The reports say with the market being so volatile to not take the fluctuating national prices into too much consideration. Overall prices are supposed to fall by the end of the year. But as we know deals can be found at any time. If prices do fall though it can be a great time to buy as people start selling for discount prices. Obviously, prices will change by different amounts in different areas of the UK. London and the South East will see the biggest drops, but we try to avoid those areas anyway due to their distorted prices. This disparity may add to the volatility but emphasises the importance of doing our own research and not relying on national news.
Estate agents will inflate prices
One thing also to consider is that, during times of fluctuation, estate agents will inflate the prices of properties as cover. The Times found that some major estate agency chains overvalued properties by up to a fifth. Therefore, this period may be a great time to find our own deals rather than through agents. This is not only to avoid overcharging estate agents but also because when vendors are unsure our professional approach can be reassuring. This can lead to some great deals as we can show how great we can be to work with.
Rightmove has been uniquely optimistic among other property news websites. Their director Miles Shipside says that people’s patience is wearing thin with the Brexit situation. They may have been delayed for a year or two waiting for market stability. And are starting to stop taking notice of the news and just take the plunge. This should be true with us as investors too as conditions will never be perfect, but deals can be found at any time.
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