How is Brexit likely to affect 2020 mortgages and house prices?

We have said it before and we’ll say it again: the one thing that is certain about the impact of Brexit is uncertainty.

The way in which we leave will almost certainly shape what happens with mortgages and house prices in the coming year, with a likely fall in house prices should we go with the no-deal Brexit option. KPMG predicts a fall of approximately 6%; though suggests a worst-case scenario could see falls of up to 20%.

Uncertainty will always make the mortgage and property industry a little jumpy. And the imminent general election isn’t helping. With continual differences of opinion from all parties on the way Brexit should go, predicting its bearing on the sector is simply not possible. Yet.

Whilst all of this may make you a little uneasy, here at Euxton, we reassuringly have our finger on the pulse of the mortgage and property sector at any given time. We offer sound advice based on what we know.

So, what do we know so far?

We know that house prices stagnated following the June 2016 referendum, though seasonally, this was quite usual. And we know that they fell more steeply than normal after summer 2018, perhaps due to Brexit becoming ever closer. However, September of this year saw house prices recover for the most part, encouragingly for homeowners.

That said, it is well documented that some locations have experienced a decline in house prices. Some experts believe the market has simply corrected itself, with these areas seeing inflated house prices for a lengthy period, prior to the referendum. This does, of course, bode well for first-time buyers who were previously priced out of these areas. In these areas, it is more of a buyers’ market.

Euxton’s opinion

We are in no doubt that the market is changing yet stable, at present. We, like other industry specialists, feel it’s impossible to link changes clearly with Brexit, though, in our opinion, it is having an impact on the market.

Euxton’s advice

Our advice is always tailored to your needs and objectives, with consideration given to the market in the past, how things currently stand and what is predicted for the future.

We take your own circumstances into account and ensure you receive only the most fitting advice for you, at that time.

As a general guideline, we would recommend you don’t act too hastily when choosing a mortgage or considering your next move. Look into all the options available to you. We are always happy to help here. You can reach us on 01257 208946 or email us at info@euxtonmortgagemarket.co.uk.

December 2019