Brexit & Brighton
The UK’s housing market and the construction industry, initially appeared relatively unaffected by the 2016 vote to leave the EU, despite a short pause after the surprise referendum result as householders took stock. But now with departure from the EU fast approaching in March 2019, it seems as if the uncertainties surrounding Brexit are weighing heavily on the property market.
Mark Carney, governor of the Bank of England, stated in September that a disorderly no-deal Brexit could see a drop in house prices by a third. Whilst he added that this most likely to impact the capital. Mr Carney’s warning did represent an extreme scenario, and the specifics of any deal ‘finally’ agreed by the government will of course affect the outcome and how the economy as a whole performs post Brexit.
There are many factors for households to consider when deciding whether Brexit should affect their decisions on house purchases and sales.
Housing markets in London have certainly slowed: with prices in London falling by 0.7 per cent in the past year, according to the Office for National Statistics. Transaction levels in the capital have also dropped 20 per cent on the same period from last year.
Moving away from the capital you can see clear evidence that average house prices remain on the rise. House prices overall in England increased by 3% in the year to September 2018, with Wales and Scotland both seeing increases of 5.8% over the same period.
Brighton itself was one of the areas that voted most overwhelmingly in favour to remain at almost 70%. Only 8 areas (outside of London boroughs) of a total of 400 had a higher remain percentage.
Tom Sleven of Graves Jenkins commented “We have noticed that as Brexit approaches most buyers are choosing to take a ‘wait and see’ approach regarding their sale or purchase. This is having a slowing affect on the marketplace but could rapidly change post Brexit. That being said the market has continued to remain active in Brighton with us agreeing multiple deals in the first weeks of January, which bodes well for the belief in the market from buyers”. Adding that “rather than wait sellers should consider marketing their property now, as there is so little housing stock available and still so many buyers on the lookout that you are likely to have a better chance of securing a sale at a good price”.
Our firm is an estate agency with a reputation built on total commitment to customer service and expert local knowledge. For over 25 years we have been helping people secure the best price in the shortest time for their home.
Should you wish to take advantage of their expertise, please call Tom Sleven on 01273 601060, to book your appointment.
Tom Sleven Head of Residential; Graves Jenkins