If you're thinking of moving in 2019, here's what to expect from the market, pre and post Brexit, mortgage rates and other changes that homeowners need to be aware of. Here is a roundup by The Home Owners Alliance.
Brexit
The UK’s chaotic exit from the EU continues to cause uncertainty across the country and when it comes to housing it’s certainly causing jitters. We’re regularly asked by our members whether they should hold off from making any decisions until the picture is clearer.
Housing expert Henry Pryor: “I expect Brexit nerves and wider uncertainty to make buyers think twice before committing to what for most is their most expensive purchase. Most I expect will 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. The deals done in Q1 won’t show up until the summer which will knock confidence further as it may look like the market is falling which in itself will add to uncertainty even in 12 months time.”
Mortgage rates
2018 saw interest rates rise for only the second time in 10 years when the Bank of England’s Monetary Policy Committee hiked rates to 0.75% in August. So, what can we expect in 2019?
David Hollingworth, mortgage expert at London & Country: “The direction of travel for rates has been a gradual increase but like any forecast for next year, it’s impossible to avoid the question of Brexit and how that might influence rates. If the exit is a disorderly one there could be further weakening in the pound, resulting in upward pressure on inflation. Higher inflation would typically be countered by higher interest ratesbut it’s also possible that the Bank will look through thatand could even cut rates if it feels that the economy is in need of support, just as it did following the referendum in 2016.
“The mortgage market remains very competitive, so borrowers have the chance to take action and remove any guesswork by fixing their rate at a competitive level.”
New build nightmares and leasehold scandals
The new build sector was the subject of A LOT of bad press in 2018, and rightly so. Far too many buyers are moving into sub-standard new builds. Unfortunately, we expect this will continue this year, unless the government takes action.
Worryingly, we’re finding it’s not just new build quality that’s a growing concern, but the types of schemes liked
shared ownership, issues around selling help to buy homes, and of course
leasehold tenure and the myriad of problems that can bring with it.
Estate agents
2018 wasn’t the easiest of years for the sector. Onlines especially were hit hard with the closure of Hatched and eMoov falling into administration. High street agents have also been responding to a quieter market by scaling back and share prices dropping.
The good news is there are deals to be done for consumers, particularly on fees.With formal regulation of sales and letting agents expected next year, service levels should also improve across the board.
Surveys
Home Owners Alliance has made no secret of the fact they don’t think surveys in their current form are fit for purpose and last year the Royal Institution of Chartered Surveyors echoed these sentiments and is planning to introduce a new standard to improve and simplify the buying process for home buyers.
Paul Bagust, RICS global property director:“The new Home Survey Standard will bring together the views of consumers, stakeholders and practitioners to become the best practice benchmark in achieving consistency and high quality.
“Over the coming months, we will be leading an extensive public consultation to deliver a standard which ensures transparency, consistent competence and high level of service as expected from RICS professionals. Attaining the highest professional and ethical standards is vital to provide consumers assurance that work undertaken by home surveyors meets these standards.”
Here are the HomeOwners Alliance
current campaigns for a better deal for homeowners.
