Coventry house prices and across the UK are affected by many factors. Business confidence and the state of the economy affect decisions on interest rates. Also mortgage provider’s willingness to lend is based on how they view their chances of getting the money repaid. If they think the long term outlook is positive then they will be more likely to lend, if they think the economy might suffer and people might earn less then they will be less likely to lend to them. They might also apply more stringent conditions such as bigger deposits or higher repayments.
The current political climate has seen many changes recently as a direct result of the Brexit vote on 23 June 2016 which could affect economic prospects. The new Prime Minister, Theresa May, has acted quickly to quell any nerves with generally well-received appointments to senior positions. The Bank of England has held interest rates and is expected to keep them at current levels for the next few months – Bank of England maintains Bank Rate at 0.5% and the size of the Asset Purchase Programme at £375 billion
How will Coventry house prices be affected?
The local economy is generally doing well with major employees such as Jaguar Land Rover increasing investment. In the short to medium term Coventry should be immune from any major problems with regard to employment. Nationally, it’s a case of wait and see.
David Cox, managing director of the Association of Residential Letting Agents (ARLA) and Mark Hayward, managing director of National Association of Estate Agents (NAEA), said: “The outcome of today’s EU referendum will create a period of uncertainty among homeowners, buyers, investors, landlords and developers.
“We can expect international investors to look a lot harder at the UK as a market; this will have a consequential impact upon the house building sector as investment may be stalled.
“In the short term we believe that both prices, and rents, will remain stable, but we cannot be certain about the next quarter as political instability, and market unrest, could lead through into prices in the housing market.
“We believe that the UK housing market is resilient, as is the supply chain that drives it.
“But as we indicated in our Brexit report last month, the bigger impact may well be in the skills necessary to drive UK housing development, and this is now a major concern for UK buyers and renters.”
Get in touch with Foster Lewis and Co on 02476 592929 or submit our Contact form to ask any questions about properties for sale in Coventry and the West Midlands or request a free sales valuation. We also also available a free online valuation tool for the Coventry area.