As the Brexit deadline is extended until 31 January 2020, we now enter another period of uncertainty which includes a general election on 12 December.
The economic uncertainty caused by Brexit has probably affected the housing market, with house price growth slowing in the last three years and the number of housing sales taking a dip in recent months*.
Although the housing market has been weak there are signs that it has stabilised. According to the Bank of England, ‘mortgage approvals for house purchase (an indicator for future lending) increased in July this year to 67,300, the strongest it’s been since July 2017.’
So what’s next?
As the Bank of England keeps a close eye on the economic data the Monetary Policy Committee met on 7 November and voted by a majority to keep interest rates at 0.75%.
Mortgage rates still remain incredibly low, which may encourage people to secure a fixed rate mortgage deal. But with many flexible products available it’s worth taking professional mortgage advice to understand your options if rates did start to change.
The housing market is very difficult to predict as it is impacted by a number of factors. There is still uncertainty and some people may decide to take a cautious approach in their purchasing decisions and others will continue with their plans regardless. If consumer confidence is high then house prices are likely to remain relatively steady across the country. If confidence dips, then prices could suffer.
These are unprecedented times, but it’s worth remembering that the housing market has shown resilience in the past to market crises.
If you’re buying a home or looking to re-mortgage to a better deal, our Mortgage Advisors can search the whole of the market and advise on the best option available for you through our free Mortgage Advice Service.
Your home may be repossessed if you do not keep up repayments on your mortgage.
* Source: UK House Price Index, released 18 September 2019
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