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What would Brexit mean to the 27,900 Exeter Property owners?

What would Brexit mean to the 27,900 Exeter Property owners?

If you read all the newspapers, the Brexit debate seems to be focused solely on central London. Many commentators have said Brexit would mean central London would have a lower standing in the world, meaning less people would be employed in Central London, with the implication of lower wages, fewer jobs etc., in Central London … but we are in Exeter, not Marylebone, Mayfair or any part of Zone 1 London. We are in Exeter and central London is 199 miles away via the M4 and M5. We are hometown to the Charles Babbage, Matthew Goode and Chris Martin and whilst the central London property market exploded after 2009, that explosion really and honestly didn’t affect the Exeter property market. So, putting central London aside, what would an ‘in’ or ‘out’ vote really mean for the 27,895 property owners of Exeter?
Post vote, should the UK opt to leave Brussels on Friday 24th June, there would be a much more noteworthy impact. I believe that a vote to stay in the EU would see the Exeter property market return to a status quo very quickly, but the contrasting result could lead to some changes. The principal menace to the Exeter (and UK) housing market could be variation (in an upwards direction) in interest rates as a result of a Brexit, which could theoretically see the cost of mortgages grow swiftly, pricing many out of the market … but then two thirds of landlords buy without a mortgage, so that won’t affect them. Also, according to the Bank of England, 80.33% of all new mortgages taken out in 2015 were fixed rate. Looking at all mortgages as a whole, according to the Bank of England, 44% of all UK mortgagees have a fixed rate mortgage, but 56% don’t, so if you aren’t on a fixed rate … talk to your mortgage broker now, because they can only go in one direction!

I suspect whatever decision the electorate of Exeter and the country as a whole makes, over the long term it won’t have a major effect on the Exeter property market. We have seen off ‘the end of the world’ credit crunch of 2008/9 and subsequent property crash, the 1988 Nigel Lawson induced post dual-MIRAS property crash, the 1979 Winter of Discontent property crash, the 1974 oil crisis that stimulated another property crash … hell, we can even go back nearly a century with the 1926 post General Strike slump in property prices…

Today, property prices are 320.32% higher than 21 years ago in Exeter and are 3.93% higher than 12 months ago. So, make your own decision on 23rd of June 2016 safe in knowledge that whatever the result, there might be some short term volatility in the Exeter property market, but in the long term (and property investment is a long term strategy) there aren’t enough houses in Exeter to live in either to buy or rent … and until the Government allow more properties to be built – the Exeter property market, will be just fine … even if it has a little blip in the summer, there could be some property bargains on the run up to Christmas to be had!

For more advice and opinion on the Exeter property market, even where those buy to let bargains could be found now … visit the Exeter Property Blog or pop into Northwood Estate Agent and speak to our experienced team for further advice.

Michael Fredriksson

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