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It's not doom and gloom for the housing market
Recent comments made by Bank of England governor, Mark Carney, may have existing and future property owners, as well as landlords and developers, concerned about the future following Brexit. Sarah Brooks, Partner and Head of Residential Conveyancing, analyses his recent comments and suggests that all is not as it may seem.
Brexit and the property market
Mark Carney remarked this week that a no-deal Brexit could lead to a 35% house price crash. The implications of this could then lead to a repetition of the 2008 financial crisis, with the value of the pound declining and house prices falling. “Ever since the referendum in 2016, we have heard endless predictions of the property market suffering, but what we have seen in the last two years couldn’t be further from this,” begins Sarah. “In those last two years we have seen the interest rate rise, an indication of a strong economy, as well as 2017 seeing the number of first time buyers and people moving home in general at a ten year high. These are not signs of a disaster looming.”
The property market has been a focus for the Chancellor, Philip Hammond, since his appointment with the abolishment of Stamp Duty Land Tax last November for first time buyers, as well as investment in new homes as part of the Housing Infrastructure Fund. In February, Mr Hammond announced the investment of £866million for local housing projects. This project will see 300,000 new homes built each year by 2020, and will also go towards the surrounding infrastructure such as new roads, cycle paths, brides and other facilities such as schools and healthcare centres.
Sarah concludes, “If there is an area for improvement it is in the supply of houses, particularly when there are so many options to help first time buyers onto the property ladder; there needs to be adequate housing levels to meet the levels of demand. It is encouraging to see the government investing more each year, but comments such as these from Mr Carney are potentially very dangerous and are more likely to cause issues than stop them. The fact is, we are leaving the EU in six months time and while we are not denying there is change afoot, what we need now is positive action, not predicting the worst which will cause people to panic and reconsider their plans to move, meaning a static market. The signs we are seeing are only positive ones, so much so we have recently opened a new office in Chandler’s Ford to meet demands in the local area. ”
If you are considering a move, you can contact Sarah or the Residential Conveyancing teams on the following numbers:
Fareham: 01329 222096
Portsmouth: 02392 776549
Southampton: 02380 717410
Chandler's Ford: 023 8071 7467
This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice. All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.