More Properties on the Market in Bexley Borough Since Brexit

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April Fools’ Day 2016 was no joke for some landlords, as they rushed to make buy to let property purchases throughout late March to beat the extra 3% stamp duty George Osborne imposed on such properties after the 31st. All the property professionals in the borough have noticed that the demand to buy from these landlords has eased since April and May.
The Brexit issue is also having a tempering effect. You may recall that I wrote about this a few weeks ago, stating that Brexit won’t prompt the end of the world scenario some suggest. In another article, I spoke of the growth rate of Bexley Borough property values and how, whilst the rate of growth is slowing, Bexley Borough property values are still 13.3% higher year on year, although the month on month growth rate has started to moderate compared with the heady days of 2014 and 2015. 
Intriguingly, a recent members’ survey of the Royal Institution of Chartered Surveyors states that only 17% believed property values would increase over the next Quarter, compared to 44% at the end of 2015. All of this led to an increase in properties for sale. For example, in the DA6 postcode (mainly composed of Bexleyheath) there were 40 properties for sale in December (of which 12 came on to the market for the first time). In January, February and March, 67 properties came onto the market (an average of 22 per month). By the end of the first Quarter, there were 52 properties available, a rise of 30%. These figures are mirrored in most of the neighbouring postcodes throughout Bexley Borough.
I believe that this easing of the property market is good. With less competition, investment landlords won’t have to pay top dollar to secure a property. At first glance, the easing might be seen as bad news for the 7,701 homeowners in the DA6 area, but nothing could be further from the truth. Most homeowners who move go up-market (i.e. from a flat to terrace/town house, then a semi and then detached). Whilst last year you would have achieved a top dollar figure for your property, it would have cost even more to buy another one. The Swings and Roundabouts of the Bexley Borough Property Market!
Everything indicates that, whatever the ongoing aftermath of the referendum, in the long term the disparity between demand and supply will still exercise a sturdy, definitive influence on the local property market. Assuming that we don’t have another credit crunch or issues like a major world conflict, property prices are likely to be 20 to 25% higher in 2021 than today. 
One place for landlords and homeowners to find this information is on the Bexley Borough Property News Blog: www.bexleyproperty.co.uk You’re also more than welcome to give us a call on 01322 559955 or pop in for a chat. Our office is located in the heart of Bexley Village (next door to the King’s Head Public House).

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