As Brexit draws closer it is only natural that home owners are worried about how it will affect them. However, experts say that property prices are unlikely to suddenly drop when we leave the European Union.
What is more likely to happen is a slower moving market, which could prove useful to first-time buyers and holiday home owners.
The current marketplace
Since the vote for Brexit took place the property market has continued to rise, but at a slower speed. According to Nationwide, as of January 2019 house prices rose 0.3% and the annual growth was just 0.1%. This is the lowest growth rate in nearly 6 years showing both sellers and buyers are waiting to see what Brexit brings.
This is good news for first-time buyers with many hoping the market will crash after Britain leaves the European Union. House prices have already started to slow across the country and for the first time in years London properties have been reduced.
The rise in staycations increases holiday home purchases
For those with a second property, it is not any clearer how the market will develop, but it has been reported that since the referendum vote in 2016, there has been a rise in staycations.
Visit England predicts this will continue after Brexit with bank holiday staycations boosting our economy by a huge £1.7 billion. This corresponds with the results of Away Resorts’ recent survey, which discovered 28% of Brits have said that leaving the EU has sped up their decision to buy a UK holiday home this year.
Here at Away Resorts, we have seen an increase in our holiday home enquiry figures and sales. It seems that as there is uncertainty over the future of overseas holidays, Brits have decided to take matters into their own hands and invest in the UK. This could prove beneficial for many reasons, such as not having to worry about exchange rates and the new rules at the UK border.
Brits are bringing back the British holiday
With questions around travelling abroad after Brexit, our survey found that 59% of Brits are looking to buy a UK coastal holiday home this year. The South of England topped the list of most desirable holiday home locations with 46% of the vote and the South West was the overall number one choice at 26%.
First time landlord, John Simpson, said: “I recently received some inheritance, which I invested into a flat in Bristol. I currently work in Barcelona, so I plan on letting the property out to holiday makers until I return to the UK.”
The South of England has always been a popular holiday destination and here at Away Resorts we have holiday homes available in multiple coastal destinations from Whitecliff Bay on the Isle of Wight to Barmouth Bay in Wales. Since Brexit we have seen an increase in purchases and sales are not showing any signs of slowing.
Alternative homes are becoming the top choice
Overall there is no clear indication on how the property market will be affected, so more are looking into non-bricks-and-mortar options. Our survey found 37% of Brits are looking to buy an alternative home, such as a caravan or lodge, compared to 36% looking for a house and 27% at a flat.
Rachel Summers, who recently bought one of our cool caravans at Tattershall Lakes, said: “I wanted to buy an alternative home that really stood out. I fell in love with the Tribeca, one of Away Resorts new alternative caravans, but we had to move quickly as there were only four available for sale! We managed to buy the last one and are delighted with our decision.”
Kate Watts is Holiday Home Sales Marketing Manager at holiday park operator Away Resorts