Is Now the Right Time to Invest in Property in Plymouth?
Amidst so much uncertainty with what ‘Brexit’ entails and what will happen when we do leave the EU (if, indeed, we do), you may be concerned about your next property move.
Is investing in the Plymouth area the right thing to do at this time? And what could you expect post-Brexit?
We find out below.
The Current State of Plymouth’s Property Market
According to the UK House Price Index, which is produced by the Office of National Statistics from Land Registry information, average property prices in Plymouth have remained stable over the past year.
In January 2019, the average property price was £177,621. While this is considerably lower than the national average (£228,147), it does bode well for first-time buyers. These lower-than-average numbers mean properties are much easier to afford. Therefore, first-time buyers are more likely to be able to get their foot on the property ladder, and perhaps sooner than they thought.
The average property owner in Plymouth will have noticed their property’s value increase by just over £29,000 in the past 5 years.
How Could Brexit Affect House Prices?
When the governor of the Bank of England, Mark Carney gave his bleak warning that a no-deal Brexit could lead to house prices dropping by 35% over the next 3 years, it was enough to send any property owner or purchaser into a state of panic.
It was also suggested that Carney warned Downing Street of rising inflation, a fall in the pound, spiralling mortgage rates and a vast number of homeowners being left in negative equity.
While many others have added that the bank’s job is to prepare for the worst, it is likely that many people are going to be put off buying due to all of the uncertainty the UK currently faces.
The statistics from the UK House Price Index also mirror these warnings and concerns, with sales volumes in Plymouth falling towards the end of last year as people prepared for Brexit in March. In August 2018, 389 existing properties were sold and 19 new builds, fast forward to November 2018 and just 287 existing properties were sold and 21 new builds.
Uncertain Times Require Expert Advice and Extra Caution
Unfortunately, as Brexit is still a large unknown, it is difficult to predict exactly what could happen over the coming months to Britain’s economy. That’s why you may want to seek the specialist advice of the likes of Avison Young to ensure your next property investment is the right one.
Plus, keeping an eye on prices, the number of properties coming onto the market and the number of properties selling is advised in the coming months, as we (hopefully) start to learn more about Brexit and what this may entail.