So here we are on the other side of the referendum and after over 40 years, the British public have expressed their wish to leave the European Union.
But what does this now mean for the central Somerset property market?
In the aftermath that has ensued, the stock market wobbled and Sterling took a hit against other currencies and amidst the chaos prime minister David Cameron fell on his sword! It has been quite a time in political history!
In the run up to the vote there were indeed signs the market was slowing down and since then many ‘experts’ have appeared on TV predicting a huge drop in house prices.
My view is nobody really knows what is going to happen! There will always be a need for property in both the sale and rental markets – people will continue to move for births, marriages, deaths, divorce, education or careers and that will not change materially and unlike the huge fluctuations in the movement of the pound, the effect on house prices is more likely to be measured over the coming months, even years.
Since the last referendum in 1975 the average house price in the UK has risen 1850% so panic not.
The reality is house prices are driven to a certain extent by economic factors, but more by supply and demand and providing both buyers and sellers hold their nerve and do not create an imbalance the market will stabilise after what is likely to be a turbulent Summer as we step into the unknown, which can create uncertainty, which in turn leads to inertia!
Mendip, which incidentally was slightly in the remain camp, is a thriving area so I don’t see any reason for that not to continue! Though with the price paid for property in the Mendip area rising just 2.1% in the last 12 months (comparing the last 12 months with the corresponding previous 12 months) this could present some real opportunities! Many savvy Buy to Let investors may turn their attention away from central London, which will invariably be hit hardest by the economic and financial uncertainty and who knows Somerset may benefit.
The longer term future for the house building industry looks a little more uncertain as there could be a skillset shortage that might set back the government’s ambitious plan for more housing to be built.
Lenders may also be reviewing their lending criteria but anybody in a reasonably well paid job with a sizeable deposit to put down, may find a Brexit market provides increased buying opportunities.
So as far as I am concerned it is business as usual in Glastonbury as the buying/renting public at large seem unperturbed at least for now!
With all the uncertainty, there could still be good news for those buying or selling property so here are a few positive thoughts:
- Cash Buyers – Interest rates may drop which means it’s a good time to buy as any bank returns are poor.
- Mortgage Buyers – Mortgage rates have dropped and have never been so good – a great time to buy.
- All Buyers – If less comes onto the market but demand remains, prices may rise quicker due to supply and demand.
- Sellers – Take advantage of other seller’s holding back put yours on now, your property is in competition not isolation.
- Sellers – If prices go up or down it will always be relative when you buy your next one.
About Tom Morgan
Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk
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