The impact of Brexit on our local property market

 

Tom Smith is Senior Partner at Alexanders 

 

As a Partner at Alexanders I spend a lot of time out and about advising potential sellers and purchasers in the Midlands about the property market, potential sale values and the challenges facing the market currently and going forward into the short to medium term future. A question that has come up on numerous occasions over the past 6 months is that of the impact of Brexit on our local property market. Whilst no one has a crystal ball and the ability to see into the future, I firmly believe that we are in a market place where there are exciting opportunities for clients willing to embrace what has been a profitable 5 years for property owners.

 

The property market in the East Midlands has been extremely strong now for 5 years, with year on year house price growth on average around 6%. The biggest driving forces in our market have been continued low interest rates alongside an unwilted demand for homes from both local buyers and clients relocating to the area due to excellent employment opportunities, amenities, schooling and transport links. Investment in housing, transport links and industry continues to grow throughout the Midlands. Whether it be the relocation of the DNRC to Stanford Hall, Loughborough, the expansion of East Midlands airport, or the continued investment in working towns such as Coalville, I am in no doubt that over the coming years our area will become more sought after and our homes more sought after than ever before.

 

Mortgage rates have been competitive since around 2012, with the average home owner benefitting from interest rates of between 1.5 and 3%. All of the evidence points towards a continuation of all time low borrowing rates with certain lenders offering 5 year fixed products from as low as 1.5%, making superb news for anyone looking to upsize, invest or get onto the property ladder.

 

As a firm we have agreed 35% more sales throughout 2018 than in any previous year with sale values ranging from The Old Gardens, Quorn at £2,100,000 to a 1 bedroom cluster home in Church Gresley for £86,000. We have seen a buoyant market in all of the price sectors, but notably we have achieved record prices across Leicestershire, Derbyshire and Warwickshire in 2018 on properties in the exclusive sector between £650,000 and £2,500,000.

 

So, when asked about the impact that Brexit is likely to have on our market over the coming year, I am very much of the opinion that there are extenuating factors that outweigh any impact that may be caused by the United Kingdom leaving the European Union. Whilst some uncertainty is inevitable, investment in property has always been and will continue to be a very sound and safe proposition. Coupled with all time low borrowing rates, it may well be more affordable to acquire your dream home in 2019 than you would ever think.

 

             

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Alexanders Property Services Ltd trading as Alexanders. Tel: 01509861222
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