The exact exit route for the UK out of the European Union is currently unclear. It is this uncertainty that has the potential to weigh down the property market in 2017.
There are fears of a stagnant market in 2017, however this brings music to first time buyers ears.
The possibility of a post-Brexit slow down, for many new buyers will be the light at the end of the tunnel.
Prior to Britain’s controversial exist a slow-down in the property market was also looking likely due to political discussions about whether Britain should leave the EU or not, and also the rise in stamp duty costs since April 2016.
Another reason for first time buyers to smile is the recent fall in interest rates, designed to combat the adverse economic effects of the Brexit vote.
The Governor of The Bank Of England – Mark Carney – has already signaled that interest rates are at a lower level than when records began in 2004. The Bank of England has also recently slashed base rates, accommodating a further fall.
It is the falling rates, that are providing the encouragement to invest in London’s property market that the Brexit vote tried to take away. Financing rates are set to remain steady, increasing confidence even further.
Another positive factor that will help to restore confidence in buyers is the recently established ‘London Help to Buy’ scheme. The scheme is allowing aspiring home-buyers to have access to a interest free equity loan of up to 40 percent of the value of a new build London home for the first five year, provided the buyers can produce a 5 percent deposit and have mortgage financing to cover the remaining value of an off-plan property or a new build.
The situation we face in 2017 is challenging but not all doom and gloom. With low interest rates, increased lending and additional support from Government bodies, now is the time to achieve an unbeatable mortgage rate whilst also it could be the time to start seriously looking into buying off-plan.
Although some home buyers are putting the search on hold, the points above examine why desperate buyers are more ready than ever to get their foot through the door of London’s property market.