blogShould Brexit Affect My Decision On a New Kitchen
With Brexit looming large, there are a lot of financial decisions that have been pulled into question such as buying and selling houses for one. This leads to a whole range of other queries on the matter such as whether you should invest in home renovations during such an uncertain period. You might be concerned that you won’t see the value of your investment when it comes to selling your home if Brexit sees a financial decline in the UK. However, there are a number of reasons why you should still think about installing a new kitchen despite any concerns over Brexit. We take a look at the potential outcomes of Brexit and discuss why it shouldn’t affect your decision on a new kitchen.
How Will Brexit Affect My House Price?
The short answer to this is that we still don’t know exactly how house prices will be affected but we have already seen some fluctuation in the market. House price growth has slowed year-on-year and the number of sales overall seems to have taken a significant dip. Essentially, this simply means that people are being a lot more cautious and are not selling or buying unless they are in a strong position. There have been some predictions that a no-deal Brexit could see house prices fall, but since the Brexit vote, we have seen continued growth in the average house price. This would signal that although there is some uncertainty, we would expect house prices to continue to rise even if there is a fall after Brexit.
Should I Remortgage Before Brexit?
Another question that you might be asking yourself is whether or not you should remortgage your property before or after Brexit. It can be difficult to know when the best time to do this is as you will want to lock in the best rate to allow a budget for a new kitchen. Current data suggests that the Bank of England interest rates could be set to rise following Brexit, which potentially means higher variable rates and fixed term offers. This would suggest that it would be a good idea to fix your mortgage rate before Brexit happens to keep your mortgage repayments low. There are plenty of good deals at the moment with rates as low as 1.34% for short term fixes depending on your LTV.
Is It A Good Time To Invest Before Brexit?
With the above figures in mind, it would suggest that now could be a good time to invest ahead of Brexit, assuming you don’t want to move immediately. If you are planning to put your house on the market within 3 months of Brexit, then it might be wise to avoid a kitchen renovation. However, if you have fixed in a new mortgage rate then house prices will no doubt pick up so it could be a smart idea to invest now and wait for the market to pick up before selling. One thing is for sure, once Brexit has been resolved, there will be a lot more properties coming to market and a lot more competition. This means that if you don’t have a modern kitchen, you could find it more difficult to sell or achieve the right price with the other properties on the market.
If you are thinking about a new kitchen then make sure you get in touch with Kensington Scott. We have a range of bespoke British kitchens that are perfect for all kinds of homes. Take a look at our range online for some more inspiration on kitchens.
We can talk to you at our Tonbridge showroom at any time of the day - whether it's during office hours, or a private viewing any evening of the week, we will fit around your schedule. Book an appointment now and take your first step towards your dream kitchen.