House prices: Ongoing Brexit negotiations are having THIS impact on UK home movers
09-05-2017
BREXIT is not a consideration for more than two thirds of UK home movers, according to a new report.
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House prices: What impact has Brexit had on home movers?New research shows that despite the impact of ongoing Brexit negotiations on the political climate, life still carries on regardless for UK home movers.
With 71 per cent not even considering Brexit when planning their next house purchase, it would seem the impending EU departure is having little or not impact on consumer confidence.
Brian Murphy, Head of Lending for Mortgage Advice Bureau, the company which carried out the research, said: “The fact that 71 per cent of those planning a home move did not see Brexit as an influencing factor in their decision making process is perhaps surprising news for those who may want to paint a pessimistic picture of the current UK housing market.
“In fact, this report should be regarded as a reality check and a reminder of the fact that, for most, a home move is driven primarily by personal circumstances rather than economics or politics, something that’s clearly evidenced by our research, with almost two thirds of respondents highlighting changes in lifestyle as the key factors driving their decision to move home.”
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House prices: Brexit is not a consideration for more than two thirds of UK home movers
The fact that 71 per cent of those planning a home move did not see Brexit as an influencing factor in their decision making process is perhaps surprising news for those who may want to paint a pessimistic picture of the current UK housing market.
The report also found that those aged 25 to 34 were most likely to be unaffected by Brexit, which is possibly unsurprising with 38 per cent of the game age range citing a growing family as the reason for their move.
Brian explained: “There would seem to be mixed opinion and amongst consumers regarding what the future may hold for housing prices with 30 per cent expecting a fall over the next 12 months and 29 per cent expecting them to rise as a result of the UK leaving the European Union.
“However, whilst property prices will undoubtedly continue to be a consideration for those planning they next home move, most would appear to be shrewd in their financial planning and are taking advantage of the plethora of competitive deals available, with over 58 per cent of survey respondents choosing to fix their mortgage interest rate for five years or more, enabling them to budget for the long term by capping what for most is their largest single monthly expense.
“Overall, the poll gives us valuable insight into consumer sentiment and would indicate that homeowners who are motivated to move are not being swayed by the political negotiations, with consumer confidence in property seemingly still high.”
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House prices: 71 per cent do not consider Brexit when planning their next purchase
According to a recent House Price Index for August, house prices in the UK are at a slightly slower pace than the last few months, but this could have a positive impact on first time buyers.
Nationwide released figures last week, and Brian explained what he thought the cool down in prices means for homeowners and the wider economy.
He said: “The figures suggest that house price growth is still evident, albeit at a slightly slower pace than previously, with annual house price growth at 2.1 per cent in August, and a slight month on month decrease (0.1 per cent).
“Contrasting these figures with the same time last year, we can see that in August 2016, annual house price growth was at 5.6 per cent, which could suggest that while annual property value increases this year are still in positive territory, the market is cooling slightly.
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House prices: "A home move is driven primarily by personal circumstances"
“Having said that, with annual growth remaining around the 2 per cent figure, the market is operating absolutely in line with market forecasts for 2017.”
Brian said there are a number of factors which could be responsible for current market conditions.
He said: “Ongoing consumer demand and continuing lack of supply are perhaps maintaining prices at 10 per cent above the 2007 peak, whilst lack of wage growth is having an effect on mortgage affordability, meaning that those coming to the market currently do have an upper limit in terms of borrowing, which of course suggests that vendors have to be realistic about pricing in order to sell.
“It’s also possible that the continued lack of buy to let investors, due to income tax and SDLT changes, is having an effect on values, albeit that the impact of this group not being as active as they have been in recent years has perhaps taken some time to ripple through and have a tangible impact on values.”
House Price Index for August, house prices in the UK are at a slightly slower pace than the last few months, but this could have a positive impact on first time buyers.
Nationwide released figures last week, and Brian explained what he thought the cool down in prices means for homeowners and the wider economy.
He said: “The figures suggest that house price growth is still evident, albeit at a slightly slower pace than previously, with annual house price growth at 2.1 per cent in August, and a slight month on month decrease (0.1 per cent).
“Contrasting these figures with the same time last year, we can see that in August 2016, annual house price growth was at 5.6 per cent, which could suggest that while annual property value increases this year are still in positive territory, the market is cooling slightly.
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House prices: "A home move is driven primarily by personal circumstances"
“Having said that, with annual growth remaining around the 2 per cent figure, the market is operating absolutely in line with market forecasts for 2017.”
Brian said there are a number of factors which could be responsible for current market conditions.
He said: “Ongoing consumer demand and continuing lack of supply are perhaps maintaining prices at 10 per cent above the 2007 peak, whilst lack of wage growth is having an effect on mortgage affordability, meaning that those coming to the market currently do have an upper limit in terms of borrowing, which of course suggests that vendors have to be realistic about pricing in order to sell.
“It’s also possible that the continued lack of buy to let investors, due to income tax and SDLT changes, is having an effect on values, albeit that the impact of this group not being as active as they have been in recent years has perhaps taken some time to ripple through and have a tangible impact on values.”