Doom, Disaster and Wildly Inflated Headlines with little substance.
Sacrcasm (noun) The use of irony to mock or convey contempt. Well that about sums up my thoughts on most of the UK press in one easy reference! What the true Brexit effect will be no one knows but we can at least forecast in an intelligent and realistically positive way…can’t we?
Since the ‘shock’ 2016 vote to leave the EU has there been a disastrous effect on the UK housing market as many suggested? No there hasn’t! Recent statistics state that with the 0.7% drop in the prices in the London market the rest of the UK has average a 3% growth. Whilst regions vary in broad summary the market is relatively flat and with some added caution but the growth is still there, year on year.
On the Prime Minister Theresa May’s reported ‘humiliation’ on Brexit in Salzburg in September one London mortgage broker reported that he has “three deals fall out of bed”. Forgive my lack of dramatic pause or reaction here but seriously, it’s hardly worth reporting by the FT is it.
The continued drive against the buy to let investor has had some effect on house sale confidence and numbers but yet there are reports that a weakened will encourage even more foreign investors into the UK housing market. Again much of this is not new news.
Interest rates are still exceptionally low and the Bank of England freely reports that any further increases will be steady and slow and must reflect the overall economy’s performance and inflation.
I and many others could continue to discuss and explore many variations and influencing factors but the simple fact is that economic uncertainty makes many more cautious and that feeds through in the many sectors that make up the economy. Whilst there is caution the housing market continues to grow, demand is still vast and the new home builders have registered more new homes in the third quarter of 2018 for eleven years.
Forgive me for not joining the doom and gloom brigade who seems to wallow in negativity.