Property Market Overview: Post BREXIT
Guest blog from property market experts David Jordan Estate Agents Seaford, East Sussex.
“Our message? Keep calm
Britain is set to leave the European Union and this will have an effect on all of us in different ways. As local property experts we have outlined some of the factors that may affect the house market.…
A fundamental supply and demand imbalance.
Britain simply doesn’t have enough homes. Supply is constrained by matters such as planning rules, lack of public investment, skills shortages and even the availability of raw materials. Demand is further boosted by domestic population growth and the low cost of borrowing. This simple disconnect between supply and demand has driven prices and will continue to provide upwards pressure over the medium to long term.
Growing local housing market trend for downsizing in terms of borrowing and upsizing in terms of lifestyle.
Sellers achieving higher house prices in towns and cities along the commuter line such as Lewes, Haywards Heath, Brighton and Hove have been flocking to Seaford due to the fact these sellers can have more square footage for their pound. This has enabled many to reduce their current borrowing and retain, and in some instances increase, the size of their homes.
Housing resilience and income for the long term.
In periods of uncertainty, residential property has historically outperformed other asset classes. During the Global Financial Crisis the UK house prices strongly outperformed the FTSE all-share index. Unlike other asset classes, far fewer people are willing to sell residential property in uncertain times, which in turn further reduces an already limited supply and eventually provides upwards pressure. Currently with the volatility of stocks and shares and low interest rates paid on savings, property remains attractive to investors. Over the medium to long term investors have seen high capital growth and strong rental yields with many believing this trend will continue.
Interest rates set to remain low.
The economists at JP Morgan have forecast that the Bank of England base rate could fall to 0% as early as August. This could help to alleviate pressure for many UK households who are heavily burdened with debt, and enable access to cheaper borrowing for those looking to increase their property portfolio or upscale from their current homes.
Our thoughts? In the short term it may be a little uncertain but the property market should be judged over the medium to long term. The prospects for UK residential property remain strong. Properties are not just investments and numbers on a spread sheet. They are homes and in the end, people will always need somewhere to live.”
If you would like more information on the housing market or would like a property appraisal please feel free to contact: http://www.davidjordan.co.uk/ or call 01323 898 414, where their team of property experts can help.
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