This week’s Star Letter with thanks goes to Sox for their comment under the post: Offsetting the Brexit slowdown – Marketwatch
This is no surprise, after the country seemingly ‘knowingly jumped off a cliff’ this was always going to happen. Is this a bad thing? Yes for us poor advisers who have just about clawed our way out of the last recession and just about finished paying off the debt we ran up over that period.
My personal low point was having to ask my Dad to lend me enough money to pay my mortgage in Christmas 2010! Did it need to happen? Well actually yes again. I voted to remain however my eyes were opened to the ‘great divide’ between London and the ‘rest of the country’. It was clear to see why those other counties voted out. They are fed up of no investment in their regions, fed up of the fat cats in London getting yet fatter, and I agree with them wholeheartedly that as a country we need to do more, and find the money to invest here as well, so maybe this is where the answer is?
I sadly think that all the first-time buyers hoping to ‘cash in’ on the ‘crashing house prices’ in London will be sorely disappointed. Unfortunately George Osborne’s buy-to-let revolt, before he was dispatched, has succeeded in slowing down the smaller landlord, but the weakened pound means the overseas investor is having a ball, so guess what George? This is not going to suddenly free up property in London and South East.
No I’m afraid if you wish to be a home owner now you must look to the furthest place outside London with excellent rail links. You can then work in London and maximize salary and then also, hopefully afford a sizeable plot. However do you want to work in London? Why do all these corporates feel it’s London only, or another European country? what about all the other parts of the UK still sharing the same timezone, with massive room for improvement that are far cheaper?
I’ve had clients recently buying in Margate where a four-bed townhouse will set you back a mere £195k and a fast link will have you in London in 55 mins, (better than Southern are managing from East Croydon currently which should only take you 15 minutes).
So do I think the effects of Brexit are going to slow up the London market? Yes I do, but do I think this is the end of the world? No! What I think people, is it’s time to start loving the rest of the country, and as mortgage advisers we can help this to happen.