*This post was written in collaboration with Flagstone
(Image source: Pexels)
Looking ahead to 2020, there is only one question on everyone’s minds when it comes to home buying: how will Brexit affect the property market? There are a few things to consider around Brexit when it comes to the property market and there are some things that are linked to the economy in general. One thing that’s for sure is that even if the market isn’t going your way, there are certain areas where it might be favourable to buy property even in a downturn. If you are thinking of taking advantage of the uncertainty in the current market, it is a good idea to speak to a good UK mortgage broker to get an idea of what you can get for your money in the current economic climate.
The South East will rise again
Jobs in London are likely to attract property buyers in the commuter belt again, after a five-year slump. The Telegraph reported this is likely to come to an end in 2020 and London is set to experience a price rise of 1%. This is great news for the surrounding South East area as it is likely that the knock-on effect will be that areas that are easily commutable from London will experience a property price rise too. So if you are looking to move to this area, it may be better to do it sooner rather than later. Other areas outside London also look set to rise, but transport links will be a huge factor. The links between London and the South East seem to be the most reliable, with rail operators to other outskirt areas suffering from delays and strikes fairly often.
What will Brexit mean for property prices?
House prices have been falling since the Brexit vote, and it looks likely they will continue to fall if we get a no-deal Brexit. KPMG recently estimated this figure could be between 6% and 10% by 2021. This can sound like great news for a buyers market, but it is worth taking note there could be a few years of uncertainty in the post-Brexit economy. If you are looking to “flip” properties it might not be the best market to do so, but if you are looking to buy a home that is a long-term investment then it could be the time to strike while the iron is hot.
There will be a gradual pick-up in the market
It isn’t all doom and gloom for 2020 onwards. PwC has recently predicted, that albeit slowly, the property prices will pick up again from 2020 onwards. This report does depend on an orderly Brexit, but doesn’t mention where a no-deal Brexit would fit into this scenario. London has close ties with Europe, which is not doing it any favours when it comes to property prices. Even in the uncertainty, the Midlands and North West have continued to grow so it is likely that these areas will exhibit growth at a faster rate than the capital post-2019.