The vote to Leave the European Union is causing the financial instability predicted and past experience suggests that the UK housing market may be brought to a standstill temporarily. But some agents have seen an upturn in new sales deals agreed now that the EU referendum is over.
Dexters, which has over 60 offices across London, report that several dozen sales were agreed the morning after the EU vote, as many buy-to-let investors recognise that now is a potentially good time to negotiate value for money deals in the capital.
“Buyers and, in particular, international investors continue to see London as a safe long term investment, with reliable returns from a vibrant letting market,” said Dexters’ chief executive, Jeff Doble.
Doble, who has just delivered a £100m expansion of the business, including the acquisition of 28 offices in prime London, is urging more buy-to-let investors to “keep calm and carry on” adding to their property portfolios.
He said: “Following months of will we / won't we, the referendum is now out of the way and already in London we have seen several dozen new sales agreed, there no longer being a compelling reason to ‘wait and see’.
“After some short-lived hesitation from buyers and investors we expect prices to remain steady and then rise gradually in 2017. We have spoken to literally hundreds of investors, property developers and buyers today and they are overwhelmingly pressing on with their plans.
“London will no doubt reflect - then realise that property prices aren’t going to change much and nor are the prospects for London property over the coming years. At Dexters, it is business as usual, as life and the market will carry on.”
Post-Brexit property deals are not just being agreed in London.
Jackson-Stops & Staff’s Midhurst branch has agreed the sale of an off-market multi-million pound property on the back of last week’s Brexit result.
Despite reports of uncertainty in the market, the branch claims says it is seeing renewed optimism with both buyer and seller committing to the deal in the immediate aftermath of the referendum.
Nick Ferrier, director at Jackson-Stops & Staff’s Midhurst branch, commented: “Despite the uncertainty and tumbling markets, we agreed an off market sale to a buyer for a property on the market at around £5m [the morning after the EU vote]. The confirmed Brexit has not put off either party who are keen to press ahead with the deal.
“The majority of the UK voted to leave and so for many, the outcome is the desired one. Viewing requests in the week ahead are strong and we have a number of deals underway – no buyers have called in to put their purchases on hold yet today.”