Moving house in 2019; How will Brexit affect cost

Even before the Referendum, there was no shortage of speculation about what Brexit would mean for the UK. It didn’t matter who you were or what industry you worked in: Brexit would definitely be causing changes in your life!

Exactly how much has changed since then is debatable, especially with our current course out of the EU still in a state of flux. However, one of the most common questions about Brexit remains what it will mean for the property market. Will property prices change? Can we expect any confident growth? What will Brexit do to the prospects of buyers, sellers and renters?

Moving house during Brexit

The current target for our exit from the EU is 29th March 2019. With such a seemingly significant date looming on the horizon, you may be wondering whether it will be best to act quickly or wait things out when considering your next move on the property ladder.

The truth is that the most important research to get done at this point will be based on your current locale, rather than the UK in general. Property prices can fluctuate widely up and down the UK, with local rates and the availability of suitable housing making it so that the cost of a castle in Scotland could buy you a studio flat in London. This pattern is only expected to continue following the advent of the final Brexit deal.

Start by contacting a local estate agent and asking about the market in your local area. An experienced company should be able to provide insight into the current local buying, renting and selling conditions, though you should keep in mind that their interpretations will often be skewed in favour of getting your business.

Luckily, property websites can provide average sale and rental prices for your local area at the click of a button. This should give you a fairly good idea of how much you will be able to get for your investment. Checking these statistics regularly should provide you with a clear understanding of what direction the relevant markets are heading in.

That said, an insightful estate agent may still be able to point out factors which could alter the situation. This could include your property not having a locally-desired feature, or your decor being old and worn out. If there is something that sets your property apart from the average, it will be crucial to find out well in advance.

Brexit and buyer uncertainty

One of the most important things to keep in mind as we approach Brexit will be buyer uncertainty. With so much of our final plan currently up in the air, there is less confidence in the current course of the property market. People who need houses will most likely still buy them, but those who buy and sell as part of their job, or who are just considering buying as an investment, will likely take fewer risks.

You may be advised that it is currently a seller’s market since there is no guarantee of how stable prices will be once Brexit takes place. This is not to say that you should rush into anything, however. You should still make speaking to an experienced estate agent your first priority.

It is worth keeping in mind that, despite the uncertainty, prices have been on the rise in recent months. According to the UK House Price Index for April 2018, house prices on average had risen by 1.2% since March. There was also a 3.9% annual rise on average across the UK. Even so, it will still be worth keeping a close eye on the statistics in your local area. They can vary considerably across the UK, both in terms of property values and sales volumes.

Is it time to buy or sell a home in Brexit?

If prices in your chosen locale are consistently high, you will need to consider carefully whether you can handle the financial commitment of purchasing a property. It can be bad enough having to shell out for a deposit, but if you need to make a sizable mortgage application, the money can come with serious risks.

For example, you will definitely want to consider how secure your current job is with Brexit on the horizon. For example, if you are unsure of your how your own business will be impacted by us leaving the EU, you may want to avoid taking any major financial risks for a while.

However, if your local prices are consistent, it may be better for you to hang on to your current property for as long as possible. Ideally, once the market adjusts properly, you will have a better idea of your best possible course of action.

Of course, there is only so much advice we can give without knowing your unique situation. Remember, advice for moving house of a local estate agent could be invaluable in the coming months!

Do I need a mortgage broker?

If you are buying a property, one of your biggest priorities should speak to an experienced and independent mortgage broker. If they are not tied to any particular banks or building societies, they should be able to provide you with an unbiased picture of your financial prospects. This can include an assessment of how the market is expected to change in the near future.

A particularly large advantage of finding the right mortgage broker is that they may well take their payment from the lender rather than you. While you should always make sure of this, it can give you more freedom to make enquiries into how much you can comfortably borrow for buying a property.

Preparing for a transitional deal

As you might well have guessed by now, the worst part about Brexit is the uncertainty of exactly what shape it will take. This is not just in relation to the March 2019 departure; there will also more than likely be a long transitional period for all parties involved before we can finally get used to living outside the EU. It is at this point, once we know the reality of the final Brexit deal, that the market will truly begin to take its new shape.

Obviously, we have seen more than our fair share of delays so far in the deal-making process. Further uncertainty in the political arena will mean the same for the property market. However, if we manage to work out the best possible deal in the near future, it is likely that the market will gain confidence.

In short, you will need to keep a close eye on the news regarding Brexit, especially when it comes to the property market! If you are moving house in 2019 and need a fantastic removal company, we can help!