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Post-Brexit: Is now a good time to buy or sell?

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Following Brexit, the Bank of England decided to keep the interest rate a 0.5 per cent, indicating the economy and the UK property market is stronger than expected.

However, it’s hinted that the rate could be cut to 0.25 per cent next month, as the Bank expects a “significant weakening” of activity in the housing market following Vote Leave.

This currently only effects certain areas – share prices of house builders and real-estate investment trusts have dropped sharply, and trading has been suspended in several UK property funds.

However, demand and asking prices have remained steady in the more affordable districts on the outer edges of London. Plus, property prices across England and Wales are already bouncing back from initial falls.

Experts predict that price growth is likely to slow over the next couple of years, with property prices fluctuating between five – 10 per cent. But, this is widely regarded as a re-balancing of a market that has seen massive growth over the last few years.

So, is now a good time to buy, sell or take out equity from your mortgage?

What mortgages should you go for if you are buying at this time?
Fixed-rate mortgages are all an all-time low, so it’s a good time to lock in the cheapest rates. If you’ve got a significant deposit of at least 35 per cent, mortgage expert Boulger advises that you have a “once-in-a-lifetime opportunity” to get a fixed-rate mortgage at rates as low as 2.39 per cent. “But be aware of early repayment cost fees. If you’re thinking of moving before your mortgage term is up – look for a mortgage without these fees.”

Is now a good time to re-mortgage and take out equity?

Even if the bank rates do reduce next month, Boulger says it’s unlikely to effect mortgage rates that much because they are already low. So if you’re looking to take out equity and are not at the end of your mortgage term, you could be better off asking your current lender for an advance instead of taking out a new mortgage.

What is likely to happen to the property market if the Bank of England does cut the interest rates in August?
“A bank cut is helpful in providing a psychological boost to buyers,” says Boulger. “And there’s nothing to suggest property prices are going to fall too sharply – we still need homes and the population is still rising.

Is now a good time to sell a property?
Our agents advise that it’s still a great time to sell before any risk of a price decline. With the weather as bright as it is, now would be a great time to book in one of our take on experts to take professional photography that will blow the competition away. Unsure of the current market price of your property? Use our online instant valuation tool to get an approximate value within seconds.

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