Whether there's a hard Brexit or no Brexit at all, house prices will still go up in the long term…
Since setting up the business, the question I’ve been asked most is: “What do you think will happen to house prices after Brexit?” Well, in my opinion, it’s a fairly easy question to answer – they will go up. Whether we leave with a deal, leave without a deal or even if we don’t leave at all, they will go up. It’s just a case of how quickly, when and by what amount.
Even with all the Brexit uncertainty that we read in the papers every day and MP’s leaving their political homes and creating a new Independent party, there have still be over 200 sales agreed locally since the turn of the year. So our position remains consistent with how it has been all year, which is, now is an excellent time to be a buyer and a seller.
Over the last 12 months, we have seen a realigning of house prices locally and looking slightly wilder afield, Cambridge saw a 4% drop in 2018 according to the recent Hometrack report that was released. If you read that in isolation, it could be cause for some concern, however, if we look at the bigger picture and look longer term, there are lots of reasons to be positive about the current perceived uncertainty and landscape in the marketplace and why ‘right’ now represents a great opportunity for you to make that next dream home move.
Between the period of 2009 and 2012 after the credit crunch, Cambridge saw an increase in House Prices of 24%, outperforming every other region in the UK including London. In addition, the period 2013 to mid-2016 saw a further 47% increase in the value of their home outperformed only by London.
The “lucky few” who bought a home in 2009, as the UK housing market was reeling from the financial crisis, made more profit if they sold in 2018 than those who purchased in any of the previous 14 years, new research has revealed.
A buyer’s decisiveness would have paid dividends, with 2009 purchasers making an average £93,378 profit from a 2018 sale. However, only one in 40 of sellers in 2018 had bought in 2009, reflecting the unwillingness or inability to make a purchase in a traumatised market.
So if you are upsizing, what better time to do it than before we see steady growth return. Which, it undoubtedly will.
Locally, Huntingdonshire, with an overall average house price of £293,309, is still very affordable and with the A14 links currently taking place which will make commuting in to Cambridge and London even, once completed so much easier, makes house prices in our area look very attractive.
Average interest rate on a two-year fixed mortgage: 2.5%
Average interest rate on a five-year fixed mortgage: 2.91%
Source: Moneyfacts.co.uk
For first time buyers the stamp duty tax you have to pay when buying a home – has also never been lower for first-time buyers, who can benefit from first-time buyer relief.
This means that those buying a property for less than £300,000 could save up to £5,000 in stamp duty.
Coupled with a range of other Government-backed initiatives such as help-to-buy loans, help-to-buy ISAs, Lifetime ISAs and shared ownership schemes, there has never been a better time to take your first step onto the housing ladder.
In my opinion, there’s a lot to be excited about in our local market place and a huge amount of opportunity for buyers and sellers to make hay while the sun shines.
If you want to talk to us our team at Lennon James are on hand to help and assist in any way that we can.
Jon Brierley – Founder of Lennon James Property
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