It might have seemed like a small little vote and we’ve had a few since then, but that one cross in the box way back in June 2016 has had far-reaching ramifications. The Pound did not react well against both the Euro and the Dollar, international businesses suddenly started to rethink their investments in the UK and the jobs associated with these dried up.
One of the issues which will affect almost everyone living in Britain is the affect the vote had on the housing market. Or more accurately the effect of the Brexit vote and the signing of Article 50 on the banks who led the money to home buyers.
House prices might have resisted the market fluctuations, ad they have largely remained on the same trajectory as before the vote. So whilst they are still increasing, they were predicted to increase the same percentage no matter what the outcome of the vote was.
Wage increases have almost stagnated in the Public sector, whilst private businesses have had to tighten their belts and also slow down raises in salaries. This by itself is not necessarily going to be bad news for people seeking a mortgage, but when you look at the mortgage guidelines, it doesn’t bode too well.
It’s the way that the banks have had to become stricter on the people they can lend a mortgage to, which is having the biggest effect on house buyers. After a series of banking failures, both in the UK and famously in the USA, banks were already having to properly review the people they were lending money to. The regulations became tighter and banks had to seriously consider if the applicants could afford to make the repayments.
This has had a direct effect on one of the key indicators of financial health, which impacts the banks’ lending abilities. The transaction level of homes is falling at a steady rate. This is the number of homes that are being bought and sold. So whilst the house prices have remained at a predicted rate, the number of homes on the market and being bought has fallen outside of expectations.
Worryingly, this figure is not just in single percentage points. It has been predicted that in 2018 16% fewer homes will be sold than were sold in 2017. That’s an eighth of the entire market.
The impact this has on the home buyer is not only felt when they apply for a mortgage and have to deal with extended form filling in and checks, but that the options available for them are becoming limited. A quick look through Estate Agents in Borehamwood will show you that now could be the best possible time to buy.
It is no longer worth waiting around for the ideal home to be on the market, as by this time next year the available options will be greatly reduced. Literally, one in every eight homes on the site will not be there.
It might seem like a scary thought, but it does make you think about speeding up your decision and picking up your perfect property now.