Brexit: How the UK’s decision to leave the EU may impact property prices.

Potential good news for first time buyers

1. The decision to leave the EU will most likely be felt in the central London housing market. House price growth is currently weak and we expect a modest price fall from current prices.

2. Due to the uncertainty of the impact on interest rates, inflation, house prices & buyer confidence there is likely to be a lack of investment and activity in the residential market, therefore buyer demand will fall resulting in a drop in property prices.

3. Foreign investors may be reluctant to invest in London property due to the uncertainty regarding the economic and political future of the UK, meaning once again that demand is likely to decrease and prices will drop.

4. Demand within the rental market will fall due to a reduced influx of EU citizens, meaning investors may choose to sell their properties or even lower rents.

Potential bad news for first time buyers

1. There may be more foreign investment as overseas buyers will see greater value in the London market due to the significant fall in the pound.

2. Plans to build more homes may have to be put on hold until the impact on interest rates, inflation, house prices & buyer confidence is known.

3. House builders will see their share prices slump, which may result in a reduction in the amount of homes being built.

Overall we believe any fall in prices will be limited. Due to the current uncertainty regarding prices, demand will reduce, however once there is more clarity regarding prices we believe property prices will settle down and property investment will be an attractive option once again.

All of the views above are assumptions based on our personal opinions, research and economic principles, there is no guarantee that any of the points mentioned above will take place.

For further information on getting on the property ladder you can download our first time buyer property guide from: www.propertycohort.co.uk

Follow us on @PropertyCohort for updates and knowledge on the UK property market.

Is getting on the property ladder impossible or is it in your mind?

I was listening to LBC yesterday and the topic of conversation was Barclays introduction of a "100% mortgage"; the presenter posed the question,” Is inherited wealth pretty much the only way to get onto the property ladder"

As a young person that was able to get on the property ladder without the help of family wealth or a loan from my parents I thought it was a good opportunity for me to comment.

The question made me think if it was really impossible for young people get onto the property ladder ....

I've listed some of my views below:

1. I agree that getting onto the property ladder in London is extremely difficult. I believe that less emphasis on living in London is needed; there are plenty locations just outside London that are significantly cheaper. (I do find it interesting that many people seem to think they have some sort of God given right to live in their capital city)

2. Young people need to take responsibility for saving from a young age. If most 24/25 year olds started saving whilst they were 17/18 they would probably be in a position now to put a deposit down on a property. The earlier you start saving the better. (I started saving from when I had my first part time retail job.) Sacrifice is key

3. Access to a big enough mortgage is one of the biggest issues when looking for a property. The unfortunate truth is that you need to find a better paid job if you want access to better mortgages. This is much easier said than done but not impossible. Aim high and apply for jobs that pay you what you deserve to be paid

4. Less complaining more educating... Educate yourself about how property and mortgages work; don't let negative media headlines decide whether you can get onto the ladder or not

5. Live with your parents for as long as possible. Moving out to rent will limit the amount you can save

6. Partner up with a friend or relative and buy a place together. Two salaries are better than one

7. Help to Buy 1 has changed slightly. To reflect the current property prices in London, the Government have increased the upper limit for the equity loan it gives new homebuyers within Greater London from 20% to 40%

I'm not saying anything I’ve listed above is easy; however, I realised a long time ago that we cannot depend on the government or anybody else to truly help us out; I genuinely believe that getting on the property ladder is possible with the right mentality, knowledge and sacrifice.

If you're one of those people that don't have your parent’s wealth behind them (like me) we can either complain like everyone else or knuckle down and build our own dreams.

Guess which one I chose?

PS. Leicester would never have won the premier league if they had the same negative attitude that many people seem to have towards owning a property.

Follow: @PropertyCohort to be kept up to date with the latest property news and the release of our first time buyers guide.