House buyers and sellers ‘undeterred’ by Brexit
Two thirds of buyers and sellers are undeterred by current political uncertainty and say Brexit is having no impact on their plans to move.
That’s according to a study by Legal & General, which has attributed this optimism to a mortgage market which is supporting buyers with incentives and choice.
Indeed, it’s survey of 2,000 homeowners revealed only 12% of those who were thinking of moving in the next six months had put plans on hold because of Brexit.
There were even some for whom the UK’s exit from the EU was providing an incentive. Legal & General revealed 5% said they would be selling their property quickly and purchasing a new place before the Brexit deadline.
Kevin Roberts, director of Legal & General Mortgage Club said: “The demand for property is still there. There are so many reasons why people want to move and getting onto the property ladder itself remains a goal for thousands of young people across the UK.”
He said the mortgage market was offering good support to buyers across the country with schemes likes Help to Buy through to the choice on offer from lenders.
He added: “That said there will be buyers who are unsure of what steps to take or what support they could get to make their plans a reality.
“Good advice is paramount, particularly in times of uncertainty when it might not just mean getting the right mortgage, but also having protection in place if times do get tough.”
Brexit drives house moves
The research comes as digital mortgage broker, Trussle, carried out a study looking at how Brexit had affected people’s house buying decisions over the last three years – since the referendum.
It found, for a third of homeowners, Brexit had actually provided the stimulus which drove their decision to move.
It quizzed 2,001 homeowners who had made their purchase since 2016 and, of this group, 33% said they their decision to move was due to Brexit concerns.
Some said they had felt ‘forced’ ‘to act because they had lost confidence in the housing market due to the uncertainty. Others said they wanted to live abroad.
Its research suggested 8% of homeowners were holding off from selling amid fears of the economic climate would result in a low return on their investment.
Ishaan Malhi, CEO and co-founder of Trussle, said: “Despite the UK’s post-Brexit landscape being no clearer, there are plenty of positive signs of movement elsewhere.
“Remortgaging activity recently reached its highest peak in nine years and more people are considering a move in the next three years.
“In many ways, the housing market’s proving its resilience in the face of uncertainty. As the future becomes clearer, we could see it turbocharged.”
Article by Kate Saines for www.whatmortgage.co.uk