Since the referendum, there’s naturally been a good deal of uncertainty and doubt regarding the property market in the UK. In fact, it’s fair to say there’s been plenty of wobbling in all sectors of industry and finance.
Even though the nation voted for change, the reality of it and the doubts about just what the future will look like have made everyone a little nervous. From industry leaders to first time buyers, we’ve all been looking over our shoulders, wondering what happens next.
In the property market, there was naturally a bit of a hiccup as investors and everyday buyers and sellers paused to take stock and figure out their best course of action. Add in the upheavals still going on in parliament, and no one really knows what the future holds.
But things are getting better, and initial nerves are levelling out.
We do, at least, have a stable government once more, with Theresa May in leadership and a new cabinet working on stabilising the economy and steering us forward. She’s experienced in government and, from her track record, is level headed. She has said she’s sympathetic towards the concerns of ordinary people. She’s also pro-EU, so is unlikely to alienate the UK from the rest of Europe, an important consideration as we move through the complicated negotiations to come.
Interest Rates Drop May Boost House Sales
With the Bank of England today cutting the interest rate to 0.25%, The Guardian newspaper speculates that this will likely be good for the housing market. The low interest rate means the cost of borrowing is lower, and when more people are willing to take out mortgages, house prices may climb.
Those with existing mortgages tied to the base rate will see a fall in repayment amounts, and this too could stimulate interest among those currently sitting on the fence regarding selling. A report from ITV news today predicts some tempting new fixed-rate mortgage deals will appear for those considering buying.
Of course, the lower interest rates are not such good news for savers, but this too could prompt people to seek alternative ways of saving or investing. With so much happening to preserve and encourage growth in the housing market, property investment looks as good an opportunity now as it ever was.
Overall, the outlook for the UK property market looks promising, with plenty going on in the economy to maintain and stimulate current and future price growth.