Posted: 11 Oct 2016
What effect has Brexit had on the UK property market? How does it impact first time buyers?
Ever since the 23rd June 2016, when the results rolled in, we’ve been monitoring the impacts of the Brexit result on the UK property market and first time buyers.
Many predicted that housing activity would be flat in the aftermath of the vote, however this has yet to be seen. In fact, we’ve experienced the opposite. The UK housing market has remained buoyant in spite of the referendum. The Zoopla index states that in June, the average property price was £297,508, whereas more recently it reached £304,116. Plus, more mortgages were handed out to first time buyers in June than in any other month since 2007.
Likewise, Pricewaterhouse Cooper has predicted that house price growth will reach 4% in 2018, and will hit an average of between 5-6% in the long-term. If first time buyers purchase their first property now, this means that they should be looking at a strong investment for the future.
It’s also a great time to get a mortgage as the Bank of England also sought measures to underpin the housing market last month, by reducing the interest rate to 0.25%.
The major issue at present is the amount of housing on offer in the country. This makes it more important than ever to be building new homes, especially affordable ones, which enable first time buyers to get on the property ladder. It allows us to address the current disparity between supply and demand.
Shared Ownership is the perfect option for first time buyers, as it’s affordable, developments are located in highly sought-after areas, and in our opinion it’s a safer longer-term investment as less capital is required.
There’s still a wide range of developments on offer with shared ownership despite rising house prices. We pride ourselves on providing our customers with premium locations, from the Sussex coast to London SE1.
One thing remains clear, the short-term effects on UK property market are certainly not as bleak as were anticipated pre-vote. In fact, for first time buyers, they’re not bad at all.
Are you looking for a stylish affordable home?
Southern Home Ownership is dedicated to providing stylish, high quality and affordable new homes for sale on a shared ownership basis.
If you're a first time buyer and interested in owning a shared ownership property in London and the South East then click on the link below to take a look at our latest developments.