If you are thinking of buying a property now could be the time to take action, despite the ongoing political uncertainty which was worsened by yesterday’s Brexit deal defeat.
That’s according to some property and mortgage experts, including Kevin Roberts, director of Legal & General Mortgage Club, who thinks the combination of low interest rates and slowing house price growth should act as a catalyst to encouraging buyers to move forward.
Some buyers and sellers have been adopting a ‘wait and see’ approach amid the delay in reaching a solution over the UK’s departure from the EU.
And yesterday’s Meaningful Vote in parliament which saw the Prime Minister Theresa May’s plan for leaving the EU suffer a defeat looked set to create more instability in the housing market
But it could also create opportunities. Shaun Church, director at mortgage broker, Private Finance, said the impact of Brexit on the UK property market looked likely to rumble on far past the date of the UK’s official departure. He added: “While current homeowners may be stuck in a holding pattern for now, this flat market marks a time of great opportunity for first time buyers.
“With property prices easing, current market conditions means that for many, purchasing a first home is at its most affordable level in recent years thanks to near-record low mortgage rates, stamp duty exemptions and modification of lending criteria.”
House prices
The latest house price figures suggest the market has been slowing down. Data released today by the Land Registry showed a mixed picture, with house prices falling in November 2018 by 0.01% compared to the previous month but increasing annually by 2.8%.
In London prices fell by 0.7% annually and tumbled by 1.2% over the month. Yorkshire and Humber also experienced monthly falls in prices, according to the Land Registry figures. Meanwhile the North East houses had the biggest monthly gains, with prices rising by 1.2%.
Annually, the West Midlands saw the biggest increases – with prices increasing by 4.6% over the year.
Jeremy Leaf, north London estate agent and a former Royal Institution of Chartered Surveyors residential chairman, said these latest figures were slightly dated, reflecting what was happening in the autumn.
“They confirm that price falls in London are masking some resilience elsewhere in the UK and that transaction numbers are holding up reasonably well. However, they don’t reflect the recent Brexit uncertainty,” he said.
“On the one hand, the risk of uncertainty for the property market increases after yesterday’s vote but on the other, it helps to concentrate minds on all sides as the threat of a ’no deal’ rises, which was reflected in Sterling’s strengthening immediately after the result was announced.”
Advice for first-time buyers
Dilpreet Bhagrath, Mortgage Expert at Trussle, offered advice for new buyers feeling nervous about the market. She said: “For those first-time buyers who are worried about the current market uncertainty, opting in for a fixed rate mortgage deal will ensure you know how much you’re paying for your mortgage each month and avoid any instability over the coming months.
“Other factors should also be considered when determining the right mortgage deal for you, including both your current circumstances and future plans.”
Kevin Roberts said buyers who were unsure of where to begin this process would find speaking to an independent mortgage adviser could be hugely beneficial.
He added: “These experienced individuals can provide bespoke advice, access to mortgage products that aren’t available direct from a lender and help would-be homeowners understand the different options available.
“This could include Government Schemes such as Help to Buy and Shared Ownership, high loan-to-value mortgages or family assist mortgages, to ensure they find the right solution for their needs.”
