There can be no denying that both Brexit and political uncertainty have had a major impact on the property market, with many buyers and sellers reluctant to take the plunge while such doubt exists.  However, with a landslide Conservative win, the markets are already becoming buoyant, and it look like it had received the lift it needed.

Things started to look up the moment the exit poll suggested strongly that there had been a large Tory win.  The pound strengthened by nearly 2% to $1.34 at 10:05pm following the first indication of the exit poll, this being its highest level since May 2018. It also rose 1.3% against the Euro.

So, does this mean that the value of your home is about to go up?  Property is probably not going to see huge rises initially – though many commentators agree that it will continue to steadily rise – but it will put a lot more confidence back into the market, and that is always good for both buyers and sellers.  The sellers will see more interest in their properties and less likelihood of people trying to push for price reductions, and buyers because there tends to be more properties on the market to choose from.

The election and its result also demonstrated that, fundamentally, people just wanted to get Brexit done, and with it no a certainty and very soon too, people can start to look to the future, in whatever form it takes.  Whether increased confidence will translate as greater disposable income remains to be seen.

The key element to both of these politico-business segments is the certainty that they bring, and there is nothing like certainty to calm a market.  However, many market pundits are saying that while Brexit has had an impact on the market, the notion that it has been solely responsible for depressing the market is untrue.  The Brexit flux was a significant factor, but property prices in the London market had already started to fall from the peak at the beginning of 2015 because it had hit saturation. The fundamental cause of the price drops is affordability, and London property has become increasingly unaffordable for a growing sector of the buying public.

With the UK now certain to leave the EU at the end of January, many people are speculating about the potential for the UK in the next few years, with several raising the prospect of the country becoming a beacon for business but with a close proximity to the EU.  That is likely to make living in the UK highly desirable amongst many and that, in turn, is likely to keep house prices on the up.

With this in mind, many of the newspapers are carrying a story about an unnamed Chinese multi-millionaire who put off buying an £65,000,000 Belgravia house until the result of the election was known.  Fearing a raft of tax issues that would potentially comer with Jeremy Corbyn’s Labour Government, the mystery buyer only instructed his estate agent to obtain Belgravia Gate on Grosvenor Crescent in following news of a Tory 80-seat majority.

If you are now considering a mortgage in these increasingly settled times, then come and chat to us at Grange Mortgages, and see what we can do for you.