Ever since the UK voted to leave the EU back in June 2016, the country’s housing market has felt the repercussions. The number of houses coming onto the market has decreased as both buyers and sellers wait to find out exactly what Brexit will mean for them.
On top of Brexit uncertainty, we’ve had a general election to contend with. As a result, many buyers and sellers are feeling a little nervous. If you’re one of them, understanding the impact of the general election, and Brexit, on the housing market could give you the confidence you need to complete your move.
Major political or economic uncertainty is never good for the housing market. As property expert Henry Pryor says, ‘So, whilst the housing market hates uncertainty we now have the Election, a Budget presumably to follow, Christmas, the weather be that floods or a return of The Beast from the East and then, conceivably, Brexit all by the end of January! Any one of these would usually freeze the market.’
In November, the number of houses coming onto the market fell by 15%, the sharpest fall since 2009 when the country was in the midst of a global financial meltdown. What’s more, the average price tag for a UK property fell by almost £4,000, showing that sellers are having to lower their asking prices to attract interest in their properties.
The East of England
Luckily for those living in the East of England, the region’s housing market has performed better than much of the rest of the UK. Last year, house prices across the country rose by an average of just 0.9%, the weakest national growth since 2012. In the East of England, however, property prices have risen by an average of around 10.05% since the Brexit vote. This is considerably more than London, where prices have gone up by just 0.99% in the last three years.
How to cope with uncertainty
The Tories secured a landslide victory in the recent general election so this alleviates some of the uncertainty surrounding our country’s future. But the effect on the property market may not be as clear cut as the results on election night. If you want to sell your property fast, you could consider dropping your asking price to attract buyers. If time isn’t an issue, you may be able to wait out the ups and downs of the coming months and the still pending Brexit to achieve a higher price for your property.
If you’re a buyer, now could be a great time to start your search. Dropping prices and uncertainty could help you to find a great deal on a property and secure your dream home for a better price. However, as there are fewer homes currently on the market, you’ll need to conduct a thorough search if you’re going to find the home that suits you perfectly.
Get in touch to find out more about buying and selling property in the East of England. I’d love to hear what your thoughts so please do share your comments or get in touch on Twitter @JamiePropSearch