Brexit doesn’t mean you need to put off mov­ing

Harefield Gazette - - PROPERTY -


(From left) Vin­cent Courtney, man­ag­ing di­rec­tor of res­i­den­tial sales; Peter Coles, CEO; Michael Cook, man­ag­ing di­rec­tor of let­tings; Peter Lover­dos, Group COO; Michael Palmer, fi­nance di­rec­tor; Peter Fuller, di­rec­tor of merger and ac­qui­si­tions; Peter Ka­vanagh, man­ag­ing di­rec­tor.

ASHOCK re­sult for some, the de­sired re­sult for the ma­jor­ity, and cer­tainly a pe­riod of un­cer­tainty for the econ­omy, but is Brexit a rea­son to de­lay your move? “I strongly be­lieve that in six months, if not be­fore, we’ll be look­ing back and won­der­ing what the fuss was all about,” com­mented Peter Ka­vanagh, man­ag­ing di­rec­tor at Ro­mans.

“The rea­sons you need to move now or in the fu­ture are very un­likely to have changed.”

Through­out the UK, and in the South East in par­tic­u­lar, do­mes­tic buy­ers drive the mar­ket and their mo­ti­va­tions to move will not have been af­fected by Brexit. Ba­bies are still be­ing born, cou­ples are still get­ting mar­ried and di­vorced, peo­ple still need to up­size, down­size and re­lo­cate due to jobs or to get into spe­cific school catch­ment ar­eas.

“Un­der­stand­ably, buy­ers who don’t have an im­me­di­ate rea­son to move may sit back for a few weeks and see what, if any­thing, hap­pens. How­ever, most of our cus­tomers have real rea­sons to move sooner rather than later, and don’t want to lose their dream home or de­lay their move be­cause of a bit of un­cer­tainty.”

If the me­dia’s scare­mon­ger­ing is to be be­lieved, the London prop­erty mar­ket could be ad­versely af­fected due to its re­liance on for­eign in­vest­ment. How­ever in­ter­est­ingly, ac­cord­ing to some reports there has been up­lift in in­vest­ment from out­side of the EU as the strength of the pound weak­ens and London prop­erty be­comes a more at­trac­tive in­vest­ment glob­ally.

“Grow­ing fam­i­lies and as­pir­ing first time buy­ers cer­tainly won’t sit back and wait in case some­thing changes,” added Peter.

The lo­cal mar­ket­place is still very ro­bust and peo­ple are con­tin­u­ing to buy, sell, let and rent prop­erty. In fact, Ro­mans New Homes had one of their most suc­cess­ful week­ends of the year im­me­di­ately fol­low­ing the EU ref­er­en­dum re­sults, with over £6 mil­lion pounds worth of prop­erty be­ing sold!

Fur­ther­more, out of the 900 cur­rent prop­erty sales agreed with Ro­mans, only 20 were can­celled dur­ing the week post-Brexit.This is only marginally more than can be ex­pected dur­ing a nor­mal pe­riod.

Will Brexit cause prop­erty prices to fall?

Ac­cord­ing to a re­cent re­port from Which?, the Con­sumers’ As­so­ci­a­tion, ‘with the on-go­ing lack of sup­ply in the mar­ket and the pos­si­bil­ity of con­struc­tion rates slow­ing down, house prices could re­main rel­a­tively steady’.

Vin­cent Courtney, man­ag­ing di­rec­tor of res­i­den­tial sales at Ro­mans, ex­plained: “House prices will only fall if the bal­ance of sup­ply and de­mand changes.We recorded an 8% in­crease in users vis­it­ing ro­ the week af­ter Brexit com­pared to the week be­fore, and ex­actly the same num­ber of cus­tomers set­ting up on­line ac­counts to as­sist with prop­erty searches and sales.

“Plus, with in­ter­est rates now set to re­main very low for even longer there are some re­ally in­cred­i­ble mort­gage deals avail­able – pos­si­bly the best we will see in our life­times, at­tract­ing more peo­ple to move sooner rather than later.”

Just this week HSBC re­leased its ‘cheap­est ever’ mort­gage, with in­ter­est rates fixed at 1% for two years, and if un­cer­tainty is a con­cern TSB have just launched a five year fixed rate at only 2.25% and a 10-year fixed rate at only 2.89%.

Is prop­erty still a safe in­vest­ment?

In­vestors may pause for thought, but there is no rea­son for them not to pur­chase buy-to-lets, as Michael Cook, let­tings man­ag­ing di­rec­tor at Ro­mans ex­plained:

“There’s cer­tainly more volatil­ity in stocks and shares than the prop­erty mar­ket which has seen the best in­vest­ment re­turn over the last 30 years.

“With de­mand con­tin­u­ing to ex­ceed sup­ply economists are pre­dict­ing on-go­ing house price rises and strong rental yield growth over the next five to 10 years, at­tract­ing more in­vestors to pur­chase buy-to-let prop­er­ties.”

With close to 30 years’ ex­pe­ri­ence in the lo­cal prop­erty mar­ket, Ro­mans is best placed to of­fer you ex­pert ad­vice be­fore you make your next move.

Con­tact the team at Ro­mans Uxbridge, in­cor­po­rat­ing Ben­nett Res­i­den­tial, to find out more on 01895 812 222.

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