21 May 2019
With Brexit taking up most of the headlines and news coverage at the moment, it’s perhaps no surprise that it’s impact has reached so far and wide. Uncertainty over Brexit had led to a lack of demand in the property market but something has changed that as buyers seem to have become bored of Brexit.
Prices Are Rising
The main reason why property market experts think that property hunters are now bored of Brexit is because of April’s bounce in home prices. The average asking price managed to hit £305,449. It’s lower than this time last year, but it’s nevertheless the biggest month-on-month increase since March 2018. People simply can’t put their lives on hold because of Brexit any longer.
Tired of the constant turbulence and the ups and downs of the Brexit process, people are dropping their resistance to moving house. This is especially true of families that can’t putt off these big life changes any longer. Prices do usually increase at this time of the year, but it is April’s biggest price rise since 2016, so there’s clear movement in the market.
Political Uncertainty is Still Limiting the Market Potential
However, there’s no doubting the impact that Brexit uncertainty has had on the property market. People have been putting off moving house and upgrading their home because they’re unsure of what will happen post-Brexit. It’s more than likely that the property market would have seen greater rises and more activity if the Brexit process wasn’t still ongoing.
This is confirmed by the fact that prices are still lagging behind the point they were at a year ago. People are looking for value and being more careful about how much they spend. That might sound like a sensible move, but experts believe it’s being driven by uncertainty in the market more than anything else.
But Relative Certainty Will Last Through the Summer
The latest news from the Brexit merry-go-round is that we have an extension until 31st October. This means that the cliff edge has been put back and people can feel a little more comfortable about things like moving house. This could mean that there’s a push in the summer as people make the most of that relative certainty.
People can’t and won’t wait around forever, no matter what level of uncertainty Brexit brings, and that’s what we’re starting to see. As people get bored of Brexit, people’s concern drops and they’re less likely to let the whole process, no matter what their personal political opinions of it are, impact their ability to move house and generally move forward in life with their families.
Another factor that needs to be highlighted is the lack of homes on the market. As families get frustrated by a lack of options, this puts upward pressure on prices. There’s not enough supply to meet the demand and that’s another reason why prices are now rising. In turn, these rises might see more sellers willing to list their properties, further stimulating the market.