(54.3% of Croydon decided to remain in the EU).
So it’s been almost a month now since we ‘left the EU’, and I am getting a lot of questions asking if the property market has slowed down and what the value of their homes are. As a result I have been to see 8 properties just this week in order to give them a valuation. There is no denying that Brexit has put a huge question mark over people’s heads as to what is exactly happening in regards to the value of their homes.
This is all stemmed from local and national newspapers and news channels TELLING everyone that property prices are decreasing, we are going into another crash, and property is an unsafe bet right now. If you keep reading the same thing everyday, you will believe it, and I believe this is what is causing the ‘disruption’ in the property market. Also, the News must have the right headlines that attract readers. ‘Property crash’ headlines have been proven over the years to be the best.
Some headlines we are seeing:
Your personal home value:
Have house prices really fallen? Well it’s almost a month now, and I can say that while a few sellers have been saying “I’m not sure, is it a good time”, most of those same sellers have ended up putting their properties on the market. That’s because, in reality, in Croydon, property values are not dropping. And why would they? All of the developments are still continuing as they were pre Exit, and there is no sign of slowing down.
In fact, I received a text message just earlier today asking me if it is worth selling their 2 bed flat in Peebles Court. I said, unless it is for personal, or family reasons, then NO. In his particular case it was for personal reasons (upgrading to a bigger home) so we are going to be listing that for him.
Your rental value:
Well, actually, according to the latest report by Rightmove.co.uk, we have had a buy to let boost. It’s exactly what my predictions were, pre Vote and I wrote about it here.
A few facts that Rightmove have told me, not specifically Croydon, but very interesting anyway:
- The rental market received a boost of 8% more new properties advertised to rent in Q2 compared to the same quarter in 2015, following the Q1 rush to buy property to let out before the stamp duty charges came in
- Majority of new properties were in London, up by 22% on the same period last year, resulting in a small drop in the region’s average asking price this quarter to just under £2,000 per month
- Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter, with the East of England’s 5% annual change leading the way
- Rental enquiries up 2% in Q2 2016 compared to last year, and up 1% in the two weeks after the referendum compared to same two weeks in 2015, as the lettings market shows no immediate signs of Brexit impact
In reality, and bringing this back to the local Croydon market, the rental market has increased. June – September are typically the busiest months for Estate Agents, and this month has been our busiest yet in terms of new property listings for sale and to let. Like I said in a previous blog, investors will not stop investing in property. So in short, don’t worry about your property portfolio in Croydon.
What about the long run? – 2 – 5 years?
This is the ultimate question. No-one can know the answer, and no one can really predict what is going to happen. Again, remember I am speaking about Croydon here, I am of the opinion that values will continue to increase, as they have been the last year. This very well may not be for other parts of the country, but as Croydon developments continue and complete, the demand to live in Croydon will increase. DEMAND attracts VISITORS and VISITORS bring MONEY. Money brings happiness. Really? No… Money brings a stronger economy and more desirable place to live. Values will increase.