What Should I Do with My House – Let it or Sell It?
There is no simple answer to this question and much depends on your personal circumstances. However, if you can afford to let out your current property and still move into a new home, this continues to be the best course of action despite any post-Brexit concerns.
Letting is highly desirable for numerous reasons. Firstly, it provides an additional income per month with little to no risk involved, hopefully whilst the property gains value. There’s also the added long-term security of owning bricks and mortar.
For those unsure of their future plans, perhaps due to work or family commitments, letting out your home also means there’s the option of moving back in at a later date.
Obviously, selling up gives you access to instant cash – far more than you’ll have by letting. If you’re planning on moving home and need a large equity sum, selling it is the best option. This makes even more sense if prices are decreasing and you want to extract the best possible price for your home while you still can.
Many people are unsure of whether it’s the right time to sell and what impact Brexit has had on the property market as a whole. Despite some mixed signals, it appears that the Referendum result won’t have dire consequences for the UK property market.
Some homeowners are understandably concerned that leaving the EU will have an adverse effect on their property. However, despite the falling pound, it looks as if the usual trend of supply and demand is holding up.
A survey from the Royal Institution of Chartered Surveyors shows that buyer enquiries increased during September and October, another sign that confidence in the market remains.
Points to Consider
Owning multiple properties can bring complications if mortgages are involved. The simple question is, can you afford to keep up with the required payments on all your homes?
If choosing to let, rental income should ideally be able to cover your mortgage payments, although this in itself needs further consideration. For example, will the property always be occupied? Prolonged vacancy may make it difficult to pay the mortgage. Also, will the property require any maintenance work? It’s your responsibility to cover these costs throughout the year.
As a side note, also bear in mind that the terms of your mortgage may actually restrict or prevent renting out your home in the first place. To get around this, taking out a new buy-to-let mortgage will be required, although this may result in additional arrangement fees as well.
The general consensus is that property values will rise in the long-term as speculators realise Brexit isn’t as detrimental as some Remainers are making out. With this in mind, it is likely that letting your property in the current economic climate is recommended.
However, by taking mortgage and tax payments into consideration, selling outright may be your best option. If you’re unsure of which way to go, it’s suggested you seek advice from a professional estate agency on the matter.
If you’d like more information on the current rental market, you may be interested in how property rentals are exceeding property sales for the first time since the 1930s.