Brexit is one of the biggest challenges that the UK is facing this century. Though it will follow a transition period of two years, it is unsure how the UK will stand as a business endeavour for investors and homeowners alike when it comes to the housing market. More and more homeowners and business analysts are keeping a close eye on the market trends that might significantly shift at a moment’s notice once the proposed changes come into effect.
Unstable economic waters
Buyers are losing faith in properties as prices are falling lower and lower which is dangerous for investors in the property market. The falling prices in London continue to be an effect of the approaching presence of Brexit along with the proposition of the London Plan which aims to phase out outdated energy systems in gas and electricity found in homes that have an inefficient use of energy output. Though the intention to make way for a greener London is an admirable effort, this puts countless homeowners looking to sell their properties to adjust to the new standard set in place if they don’t want to face the trouble of being fined.
Homeowners playing smart
Renovations are no small part regarding reselling a property, and recent buyers are making fast work of their properties by creating efficient and sustainable changes to the homes they’ve bought. Homeowners are quick to sell their recently acquired properties by making the most of their purchases.
Choices such as vinyl flooring and composite doors make for a cheaper and sustainable alternative compared to traditional renovation materials. These composite doors and vinyl installations are made for a longer lifespan and are effectively easier to replace compared to conventional setups. Besides the improvements on aesthetics, the demand for modern amenities is also raised as energy prices are growing even more in light of the incoming energy price cap bill to be in effect in the next few months.
Getting a head start in selling properties is what makes the market even more competitive. Homeowners are quick to take notice of these changes to ensure that their homes are convenient enough for the buyers to adjust right away without being concerned with regulations regarding energy consumption prices through electricity bills and standard bathroom boilers.
Down in price
Property appraisals in London have gone down by as much as 20% based on the annual comparison which gives rise to doubt about whether prices will pick up any time soon or continue a downward spiral. First-time homeowners might see this as an advantage to purchasing homes at a significantly lower price, but home sellers might have to sell their properties sooner than later if they want to make a considerable profit before they incur more losses than gains in the future.
The West Midlands and Northern Ireland seem to have a positive response to Brexit with its uncertainty bringing higher demand for properties with prices steadily rising in light of the recent advancements in the capital of London.
Statistics from: https://www.theguardian.com/business/2018/oct/11/brexit-uncertainty-taking-toll-property-market-rics-research