07 Jan Moving house in 2019? Here’s what you need to know
If you’re thinking of moving home in 2019, here’s your update on what to expect from the market, pre and post Brexit, mortgage rates and other changes that homeowners need to be aware of.
It’s a brand-new year and it’s time to start making plans! January is the perfect time for new beginnings but if yours involves a house move you may well be feeling somewhat nervous. Last year was an interesting year for the housing market, so what can we expect in 2019? With the help of our trusted expert friends, we take a look at what you can expect.
The dreaded “B” word. The UK’s less than graceful exit from the European Union continues to cause uncertainty across the country and when it comes to housing it’s certainly giving people cold feet. We see this time and time again with clients asking whether they should hold off on marketing their property until the dust has settled. It is reasonable to expect that Brexit nerves and wider uncertainty will make buyers think twice before committing to what, for most, is their most expensive purchase.
Many may want something to reflect the perceived risk that they think they are taking which for many will be a reduction or discount on the price. As a seller it is important to understand what this means for you and the sale of your property. It’s not just you “taking a hit”, this is across the board which actually makes it a brilliant time to negotiate on your onward purchase. Consider it taking advantage of the chaos.
2018 saw interest rates rise for only the second time in ten years when the Bank of England’s Monetary Policy Committee thrust rates to 0.75% in August. What can we expect this year?
You cannot, of course, avoid the question of Brexit and how this may influence shifts in rates. If our exit from the EU is a messy one that could result in upward pressure on inflation. While higher inflation would typically be countered by higher interest rates it is possible that the Bank could cut rates to stabilise the economy, as it did following the referendum in 2016.
New build nightmares and leasehold scandals
The new build sector was the subject of a lot of bad press last year, and rightly so. There has been an astonishing number of buyers moving into poorly built new houses that produce nothing but nightmare stories. The unfortunate truth is that we expect this will continue into the new year, that is unless the government decides to take action.
The biggest worry appears to be not only the quality of the builds themselves but of the types of schemes that come with them, such as shared ownership, issues with selling help to buy homes and of course leasehold tenure along with the seemingly endless list of problems that can come with it.
2018 certainly wasn’t an easy year for our sector. Online offerings were hit especially hard with the closure of Hatched and eMoov collapsing into administration. There has also been a reaction to the quieter market noticed on the high street as agents scale back and share prices drop.
The good news for the consumer is that there is a deal to be done, particularly on fees, however many industry experts have commented one the fact that the current market presents a window of opportunity for first time buyers as greater bargaining power may find them more affordable properties.
We estate agents have made no secret of our dissatisfaction in surveys in their current format and in 2018 the Royal Institute of Chartered Surveyors (RICS) echoed our sentiments, now planning to introduce a new standard to make sure surveys are fit for purpose and simplify the buying process, rather than complicating it.
Zoopla has produced a particularly helpful guide which you can access by clicking here
If you’re thinking of buying or selling in 2019 and would like a chat about the market, feel free to call on 01325-776424. We’d love to hear from you.