A shout out – and a note of genuine reassurance – to long-suffering property owners
Credit crunch, austerity, mortgage stringency, stamp duty, and now Brexit!
Above the noise of non-stop media hype and speculation in recent weeks over the vote to leave the EU there are plenty positive notes to hear.
A vote to leave EU to trigger a downturn in house prices? Memories of the 2008-10 remain fresh. But that downturn was caused by a global financial crisis, during which time banks simply stopped lending. That is not the case today. The underlying UK economy is sound, lenders are much stronger, function better, are still providing mortgages and are expected to continue to do so.
There continue to be many great mortgage deals available for buyers and re-mortgagers.
We have not witnessed a dip in market activity in Edinburgh and East Central Scotland. Properties are selling well and new properties are coming to the market. The shortage of properties is still underpinning prices and while there may be fewer competitive closing dates, there has not been a drop off in viewing numbers.
It has not been a typical year. Early 2016 saw a rush to buy by investors hoping to secure a purchase before the introduction of the Government’s second home additional stamp duty charge on 1st April. The market was expected to cool following the introduction of the 3% tax but this was not noticeably the case as many properties continued to sell quickly and for attractive prices. A lack of property was thought to be the reason behind this with the ESPC recording a 25% decrease in available stock year on year. These conditions remain and are likely to result in the market continuing to perform well.
Much of the negative press on the property market has been focused on London – an entirely different market from the rest of the UK.
The ESPC predict a bright outlook for Edinburgh and East Central Scotland noting that the market in these areas has previously proven itself to be highly resilient. They anticipate that the ongoing sellers’ market and continued demand will help to iron out whatever uncertainties there may be as the Brexit process takes shape.
Brexit will be a long road to travel, but in the meantime our all-important property investment aspirations and decisions will not just sit and wait and, like any change, the market will adapt and grow.
Blair Cadell’s view is that, as with any market, supply and demand is the key. Currently there is not enough property to meet demand. Often clients’ greatest concern when selling is that they cannot see anything to buy. There are ways to manage this dilemma, and you should speak to us about how we can coordinate your sale and purchase with sound legal advice before you go on the market.
If you wish to sell or buy we have all the information to guide you through your decisions.
image by BIGSTOCK used under license