Richard Butler Creagh Shares Tips About The UK Property Market

Welcome to the Richard Butler Creagh blog. Theresa May has triggered Article 50, taking Britain back from European control and starting the Brexit process, which was chosen by the British people in a referendum. However, many in the property market are uncertain over what this means and what effect this will have. It is clear that London, as a city is booming, and so is the rest of the UK. Business is better than ever, and so many are hopeful of a positive outcome for our country.



In a recent poll, 43% of people in London think UK house prices will rise once the country leaves the EU (YouGov research, commissioned by Equifax). No one really knows for sure, but here are some predictions of what may happen in the wake of Brexit.

The property market will become more stable

As Brexit continues, the property market will become more stable, encouraging people to carry on with their lives. Years of low transactions are almost always followed by years of increased activity. With confidence returning, sellers are already demanding higher prices.

Number of house sales will rise across the UK

The triggering of Article 50 should come as a sigh of relief to the residential property market, as the Government finally provides certainty that its plan for leaving the EU cannot be derailed. The UK property market is heavily reliant on confidence – something evident through transaction levels that have been suffering since the Brexit vote, especially in London where, according to our latest data, house sales are still down 20% compared to last year.

Interest rates won't rise

It may well make the Bank of England reluctant to increase interest rates, despite the recent increase in inflation. This will preserve affordability and points to a low turnover market, with little upward or downward pressure on prices. The London market remains impervious and, with such a shortage of stock, the overwhelming level of housing demand will plug any gaps of depleted buyer interest from further afield. The demand for new properties in London is thought to outwiegh the uncertainty of brexit.

Londoners are likely to be the most cautious

Caution is likely to be greatest in London, given the extent to which house prices have risen relative to earnings in the capital in the past 10 years. It means home buying represents a bigger financial commitment relative to the rest of the country against a backdrop of uncertainty.

Whatever the future holds for the property market, taking advantage of opportunities has clearly never been more important. Bridging finance provide this support for businesses and developers when they need it most, and at the speed they need to get the deal. If you are considering purchasing property then speak to a finance expert beforehand to assess all your options. Contact Richard Butler-Creagh on the Henley Finance website. Connect with Richard Butler Creagh on Crunchase here and join the Richard Butler Creagh professional network on Linked.

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