Christmas Eve brought the news that Boris Johnson had conclusively agreed on a Brexit deal for the UK with the European Union. This gave optimism that the economic turmoil of leaving the EU would be radically reduced, yet what will this ‘trade deal’ do to the value of your Fife home and the mortgage payments you will have to make? Continue reading How Will the Brexit Deal Affect Fife House Prices and Your Mortgage Payments? (3 min read)
Tag: Brexit
Fife Properties TV (S1 EP 13) No Deal Brexit and the Predictions for Fife House Prices!
Is it all going to fall part next year! Will a no deal Brexit affect us? Will unemployment go sky high!
Is the world flat or are they not telling us the truth? lol Continue reading Fife Properties TV (S1 EP 13) No Deal Brexit and the Predictions for Fife House Prices!
No Deal Brexit – The Prediction for Fife House Prices. (4 min read)
Roll the clock back to April 2020, and major financial economists and property market commenters were sounding the alarm. The very best-case scenario was a 5% drop in property values by the end of the year, and most were in the 10% to 15% range. They forewarned the Covid-19 stimulated recession would trim tens of thousands of pounds off the value of Fife homes. Continue reading No Deal Brexit – The Prediction for Fife House Prices. (4 min read)
Fife Properties TV (Series 1 EP 6) Property Price Predications for 2021.
Hosts Jim Parker is joined by Letting Agent Richard Cook and Estate Agent Sam Green to discuss this week’s news in the Fife Property Market while answering questions live on their TV show every Saturday morning @ 9.30am. Continue reading Fife Properties TV (Series 1 EP 6) Property Price Predications for 2021.
Will There Be a ‘Boris Bounce’ For the Fife Property Market?
The Halifax announced in early January that there was a Boris Bounce in the national property market as they stated national property values soared 1.7% in December 2019 – the biggest rise since the 1.9% month on month rise in February 2007 (a few months before the Global Financial Crisis aka the Credit Crunch).
Get the flags out – all hail Boris as the Conservatives gain their landslide general election triumph – the Boris Bounce is here … or is it?
Continue reading Will There Be a ‘Boris Bounce’ For the Fife Property Market?
A Brief Guide to your Help to Buy options
If you’re a first-time buyer looking to purchase a property, then you’ll almost certainly be aware of the Help to Buy scheme and its success in helping people get onto the property ladder. What you may not be aware of is how the scheme works, and how it helps buyers to secure deposits for homes that would otherwise be out of their reach.
With that in mind, we’ve put together a rough guide to how Help to Buy works.
Can you get a sufficient deposit together?
Most standard mortgages require a deposit of at least 5% of the value of the home you want to purchase. If you are able to get the capital required, then you may not need to apply for any scheme.
Equity Loans
If your deposit doesn’t stretch that far, however, never fear! This is where Help to Buy Affordable New Build Scheme comes in. If you have a 5% deposit, you can apply for an equity loan for purchasing new-build properties. The Government will lend you up to 15% of the property’s price, and there is no interest to pay.
For example, should you purchase a £200,000 house, you’d pay £10,000 (5%), get a mortgage for £160,000 (80%) and the Government would loan you the remaining £30,000 (15%).
This scheme is open to first time buyers and existing home owners. For more information tap here: https://www.mygov.scot/help-to-buy/how-it-works/
ISAs
If you’re still saving for that all-important deposit, then a Help to Buy ISA is available to you, with the Government adding 25% on top of the value of your savings (up to £3,000) with up to 2.6% interest tax-free. A word of caution; if you’re considering this option, then you would need to apply for your ISA prior to 30th November this year. Click here to learn more.
Shared Ownership
If you can’t stretch your finances to be able to afford the entirety of a mortgage, Shared Ownership provides you with the opportunity to buy a share of your home (between 25% and 75% of the property’s value) whilst paying rent on the remaining share. You can also buy bigger shares in the property once you’re able to, offering you flexibility for the future whilst owning a significant stake in the home you wanted.
Purchasing a home doesn’t have to be beyond any first-time buyer. Speak to our financial experts about your Help to Buy options and find out how you can finally buy the property of your dreams.
Mortgage lenders predicting even more approvals in the run-up to Brexit
With mortgage approvals at record levels, the outlook for those looking to purchase a property is extremely positive and with even more approvals being predicted to be approved in the run-up to Brexit, now could be a perfect opportunity to gain that all-important mortgage.
According to data from UK Finance, the number of mortgage approvals in June rose to 42,653 which is an increase from May, and nearly at the same level as April’s two-year zenith of 42,792. With such consistently high levels of approvals being seen in the marketplace at the moment, even when compared to the same time last year, the sentiment in the market is clearly positive.
Commenting on the figures, Andrew Montlake, managing director of mortgage broker Coreco, said: “Passing the March 29 Brexit deadline was a symbolic moment for the UK property market.
“Sentiment among prospective buyers shifted very quickly from apprehension to a more positive mindset.
“The sharp strengthening in demand for house purchases during the second quarter reflects this shift in sentiment, and the broader Brexit pragmatism that took root.
“Looking forward, lenders are clearly more optimistic than some about the trajectory of demand in the third quarter.
“If demand for house purchases remains unchanged given the potentially turbulent months ahead, then that will be a considerable achievement.
“We are at a pivotal point in the Brexit endgame and a no-deal Brexit is now looking far more likely.
“As we enter uncharted waters, the impact of a no-deal Brexit on demand for property is anyone’s guess.”
Buyer and seller activity increases as Brexit’s effects wane
In what appears to be a reaction to the most recent Brexit delay, the housing market is experiencing a pronounced period of activity, according to figures provided by NAEA Propertymark.
Property demand from prospective buyers was at an eight month high during May, with the number of registered property hunters increasing by an average of 16% during the month from 265 to 307. This represents the highest level of registrations since September of last year, another significant statistic in a period where increased levels of public activity are being seen across the market.
The supply of available housing has also seen an increase in line with this increased activity, with an average increase from 35 properties per member branch on offer in April to 41 in May. This also represents a year-on-year increase of four properties from the same month last year. Average sales per branch also saw a brief increase, from 8 in April to 9 in May.
So, what’s caused the increased activity? Seasonal demand appears to have played a part, alongside the aforementioned Brexit delay which won’t see Britain exit the European Union before October 31st at the earliest. With that in mind, buyers and sellers appear keen to progress with their plans and transactions during this period of relative political calm.
“It is encouraging to see the housing market bouncing back, with supply and demand rising to the highest levels seen since last year,” noted Mark Hayward, Propertmark’s chief executive.
“It’s evident that buyers and sellers are no longer waiting for the outcome of Brexit and want to get things moving, particularly as many sellers are realising that it’s a buyers’ market in certain areas of the country.”
Fife Properties Group Office Owner, Jim Parker commented, “Buyers and sellers have concluded that all the things that could affect the housing market from Brexit have now been factored in and some are not convinced we will be leaving in October. So, it’s business as usual because they cannot wait. We are seeing unprecedented levels of seller and buyer activity compared to previous years with many properties selling quickly but more importantly over the home report value “
Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/
Property transaction numbers increase by 4%
A key indication to the health of the property market is always transaction numbers, with healthy transactions pointing towards a strong marketplace with serious buyers. In April this year, there were an estimated 64,000 transactions which represents a 4% increase in transactions from the same point last year, according to LSL and Acadata.
With a marked increase in transaction numbers, the market is proving to be extremely resilient in a turbulent political landscape. Strong first-time buyer activity in the marketplace, with many taking advantage of the Government Help-To-Buy scheme, as well as the changes to Stamp Duty encouraging purchases. Indeed, only 65% of transactions were reported as liable for Stamp Duty during the first quarter of this year.
Supporting this increase in transaction volumes is an extremely solvent mortgage market, with more money being injected into the housing market in May 2019 than at any point since 2017. In May this year almost £9bn of home-purchase mortgages were approved by banks and lenders, which is 6% higher than the previous month and an 11% increase on the same time last year.
“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March,” said Howard Archer, chief economic adviser at EY ITEM Club, an economic forecasting group.
It seems that the sentiment in the market is that both buyers and sellers are somewhat fed up of waiting for a Brexit resolution, and are therefore eager to carry on with their property transactions in the present rather than biding their time.
Fife Properties Managing Director, Jim Parker commented: “It is business as usual as the public cannot hold on forever to see what Brexit brings. I am not convinced that it will have any further adverse effects as these have already been factored in when people are deciding. The reality is you have to move for circumstances and not because you feel like it so my advice is always to do it now if you need to, as you don’t know what will change later.”
Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/
Supply and demand outstrips Brexit concerns
With the Brexit date being pushed back once more, it would appear that supply and demand for property is now the driving factor in the market, with Brexit taking the back seat in terms of market-driving factors.
In a recent survey from property investment company SevenCapital, nearly 69.5% of investors continued to invest in the United Kingdom despite the spectre of Brexit. Indeed, this confidence in the United Kingdom property market is echoed by international investors, with nearly 95% of the Hong Kong respondents believing that Brexit isn’t a critical factor in their investment decision.
SevenCapital points out that the Sterling has risen in value – a better indicator of fiscal stability – and this outweighs any potential impact that Brexit may have levied upon the market. With the average price of properties increasing last month by over 1% or £3,347, according to Rightmove, then house prices are also reflecting this upturn in the market.
Despite the headlines that Brexit has provided of late, it is evident that other factors are driving the property market, both sales and lettings. A key point to note is the lack of housing supply and increased demand of late with this duality keeping the market buoyant, despite any political uncertainties. With first-time buyers now at record levels and keen to buy, there is a whole new swathe of potential buyers entering the market which is creating an extremely competitive sales environment.
Fife Properties Group Office Owner, Jim Parker commented: “Brexit has been put to the side in the public’s mind as many believe it could now not happen or if it does will have little effect.”
Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/
