Why British property looks set to rebound once Brexit is agreed

Brexit may have put the breaks on buyers making a move in the housing market, but the build-up of demand is expected to burst next year.

Why the property market has stalled

Precarious times for the property market

Uncertainty has led to people biding their time rather than buying property, holding off on big decisions when it comes to selling, and big purchases when it comes to finding a new home.

It’s believed that the slowing of the UK housing market over the past two years has been generating a gradually increasing demand that’s being subdued. Once March 2019 comes around for Britain to leave the European Union, this could all come to a head.

Sales have stalled, with the growth rate for 2018 being estimated at 1.6% by Nationwide, making it the lowest growth rate for the past five years. What’s more, the asking price of properties entering the UK housing market, according to Rightmove, rose by only 1% in October, the lowest price growth seen since back in 2010.

A change of pace for 2019

The situation hasn’t been helped greatly by the government Budget. There was an announcement for an extra 1% stamp duty land tax for non-residents buying property, and a helping hand for first-time buyers through the two-year extension on the Help to Buy scheme. First timers are also better off since October’s announcement by Philip Hammond that stamp duty on homes under £500,000 would be subject to no stamp duty through a shared ownership scheme https://thenegotiator.co.uk/budget-2018-hammond-housing/. However, little has been done to address the difficulties and uncertainties faced by buyers looking to sell and purchase property within the UK.

Why a rebound could be coming

Despite the lacklustre movement within the UK property market, and even its failure to show typical pre-Christmas activity in 2018, the second quarter of 2019 could see things change. Now is the time to consider a move within the market, and conveyancing solicitors Birmingham, such as https://www.samconveyancing.co.uk/Conveyancing-Solicitors/Conveyancing-Solicitors-Birmingham, can help provide a reliable conveyancing quote and support throughout the process.

The narrowing gap between the sale price of current property and purchase price of a new property may provide enough incentive to trigger greater activity by April 2019. It’s anticipated that the pent-up lull of the last year or two will rebound, boosting property sales and purchases once Brexit is agreed.

Summary

This article argues that pent-up demand in the UK housing market could be released once Brexit is agreed. It cites low growth in sales and asking prices through 2018, changes such as extra stamp duty for non-residents and an extended Help to Buy scheme, and suggests a narrowing gap between sale and purchase prices could trigger more activity by April 2019.

Questions this article raises

• How accurate did this rebound prediction turn out to be?
• How did stamp duty changes actually affect non-resident buyers?
• Which regions of the UK were expected to rebound fastest?