As predicted, the pound is in freefall and the world stock markets are gyrating but this will be short lived once the speculators have calmed down and new investors seize the opportunities that will arise, according to Trevor Abrahmsohn, a veteran luxury estate agent.
The director of north London based Glentree Estates believes that property prices in most price ranges will be stable and there is a chance that when the new Prime Minister takes charge, following the Conservative Conference, and appoints a new Chancellor who could make addressing the rate of stamp duty charged a priority to help boost activity levels in the market.
He said: “The present ‘draconian’ Stamp Duty rates could be tempered somewhat to induce more activity in the market place that has come under serious pressure at the moment, reducing transaction levels by more than 50%.”
Abrahmsohn, who famously had Mikhail Gorbachev attend the agency’s 35th anniversary held at the Royal Mansion on The Bishop’s Avenue, has had a busy few days following the EU referendum, with lots of new buyer enquiries from international investors.
He commented: “Dollar denominated International purchasers buying property in the UK can now enjoy a 50% total discount from both the currency gains and the lower property values that, in aggregate, should induce them to buy in the UK. Some of these individuals have held back decisions during the four-month hiatus prior to the Referendum and their patience will be handsomely rewarded since bargains abound.
“I don’t believe Mark Carney will take a risk with the Economy by raising Interest Rates to support the Pound and offer a higher yield on Gilts to help finance our trade imbalance and, therefore, mortgage rates will continue to be at an all time low which will be comforting to homeowners.”
Abrahmsohn believes that properties in the lower price ranges up to £700,000 will continue to grow up to 4% this year but there will be no growth in values of properties in the middle to upper ranges since there is an over-supply and lack of demand.
“Although these sudden events are initially unsettling, as in 1992, when the UK fell ignominiously out of the ERM the Economy never looked back. It was traumatic at first but the gain in the medium to long term was all too real,” he added.