Are you ready for a change of home but concerned about the effect of Brexit? Our advice, don’t wait. Brexit is unlikely to affect what is a very stable local housing market. And here’s why…
Staffordshire’s stable house prices
Since 2000 both the Shropshire and Staffordshire housing markets have not seen the huge jumps in prices that have been on the front page of every tabloid paper. As you can see in the graphs below, house prices in the South East have experienced huge swings. In 2010 house prices swung from -18% to a growth of +15%, which creates uncertainty for both buyers and sellers.
Fortunately, the North West has seen slow and steady growth. And in our opinion, slow and steady always win the race. Since whether you are buying, selling or investing nobody wants the unpredictable swings in house prices that were seen in the South East in 2010.
Will Brexit affect house prices in Staffordshire and Shropshire?
In a stable market no. But do you also know that house prices are explicitly connected to unemployment rates and average wages? Luckily there is good news here also.
When unemployment rates are falling and average wages are rising, house prices rise. Since demand for housing is dependent upon income. When jobs are secure people are encouraged to enter the property market.
For homeowners already in the property market what matters is not whether house prices are rising or falling, but whether the cause of that change makes them feel better or worse off. As when you have a home to sell we expect the percentage change, of your current and potential properties, to be the same. So, if you feel better off and want to live where you love, you can confidently make the move whether house prices are rising or falling.
Mortgages are readily available in 2019
According to the Bank of England, who analysed 340 regulated mortgage lenders, in December 2018 new mortgage commitments were 4.7% higher than a year ago
Kevin Roberts, director of the Legal and General Mortgage Club, said “ the mortgage market actually shows a positive outlook. Despite Brexit looming, growing flexibility and choice continues to attract borrowers looking for a good deal,"
Jeremy Leaf, a former RICS* residential chairman, said: “The mortgage approval figures, do nevertheless demonstrate some continuing resilience in the market, even at a time of huge political turmoil.”
What should we do?
So the economic outlook looks good. Plus, the current low volume of houses on the market also reduces the likelihood of house prices crashing because vendors are under little pressure to reduce asking prices. So it’s highly likely that you’ll sell your home quickly and for the price you want to achieve.
Give one of our offices a call and start your home move journey today with a free valuation.
Newcastle-Under-Lyme | 01782 615530
Market Drayton | 01630 655535
*The Royal Institution of Chartered Surveyors is a professional body that accredits professionals within the land, property, construction, and infrastructure sectors worldwide. Follwells are accredited members of the RICS.