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Guide to Brexit and the first-time buyer

  • Ascertain what effect Brexit talk has already had on housing.
  • Explore the different pressures on first-time buyers.
  • Understand what more government needs to do despite Brexit talk to boost housing.
CPD
Approx.60min
Guide to Brexit and the first-time buyer

Introduction

By Simoney Kyriakou

Brexit talk and uncertainty has had marked effects on economic indicators such as the currency, inflation and interest rates.

The general direction of sterling has been downwards, notwithstanding a slight uptick as news broke that Donald Trump had secured the Presidency of the US, reaching a 168-year low during the summer.

Interest rates are also hitting record lows for the UK, with the Bank of England reducing rates for the first time since March 2009.

The Bank base rate is now at 0.25 per cent with some speculation it could hit 0 per cent over the coming months.

Meanwhile, inflation has ticked up again, putting more pressure on household finances as wage inflation fails to keep up.

Can ultra-low interest rate offers on mortgages lure more first-time buyers, despite the low-wage, high inflation environment?

Has confidence in the residential property market been dented by talk of 'hard Brexit?'

This guide explores what has been the effect on the housing market of the Brexit vote and ensuing political wrangling. It considers whether wages can keep up with rising house prices and whether the new-look government can continue to deliver on past promises to build enough homes to meet the demand.

Contributors of content to this guide are: Roland McCormack, mortgage distribution director for TSB; Robert Sinclair, chief executive of the Association of Mortgage Intermediaries; John Phillips, group operations director at Spicerhaart and Just Mortgages; Donna Hopton, founder of Cherry; David Hollingworth, associate director of communications for London and Country; Andrew McPhillips, chief economist at Yorkshire Building Society; Stephen Smith, director of Legal & General Housing Partnerships; Kate Faulkner, founder of Designs on Property; the National Association of Estate Agents; Peter Williams, executive director of the Intermediary Mortgage Lenders Association; HM Treasury; The Council of Mortgage Lenders; The Redfern Review; and Jeremy Duncombe, director of the Legal & General Mortgage Club.

simoney.kyriakou@ft.com

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. How many sales in October were made to first-time buyers, according to NAEA data?

  2. What is the house price to earnings ratio for London, according to Hometrack?

  3. Ms Faulkner says there is a nervousness with Brexit that house prices will come down. True or false?

  4. Once triggered what does Mr Hollingworth say Brexit could cause?

  5. How much does Mr Hammond say will be invested to deliver another 40,000 additional affordable homes?

  6. How many houses are there in the UK, according to The Redfern Review?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Ascertain what effect Brexit talk has already had on housing.
  • Explore the different pressures on first-time buyers.
  • Understand what more government needs to do despite Brexit talk to boost housing.

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