The Brexit effect

first_imgThe post Brexit vote pendulum swings, with more positives and negatives bouncing into the property market every day.Some commentators report that overseas buyers are making a killing on UK property because of exchange rates, while others say that foreign investment is stalling as banks get picky about loans for UK properties – Singapore’s United Overseas Bank has temporarily stopped lending on London properties while others make worried noises.The Bank of England may be pleased that the housing market has slowed, the prediction was that a Leave vote could mean a fall in house prices of 10-18 per cent – again, good news for some, terrible news for others. Developers like Galliard Homes, who allowed buyers get-out clauses in the event of a Leave vote, report that very few had, so far, taken that up.One of the more negative vibes came from Zoopla, saying that the average UK home value will fall by £53,000, from its current level of £297,000 – 18 per cent. Bank of America Merill Lynch put their best guess at a 10 per cent fall, KPMG said five per cent.Dominic Agace (left), CEO of Winkworth says, “We saw this last year with the General Election, with a quieter period in terms of transactions in the lead up to the vote, and so we anticipate a similar effect in the lead up to Referendum. However, the UK and London in particular has always had a draw for foreign investment, not only from Europe but much further afield, and I would expect this to continue whatever the outcome, especially as people come for many reasons including schools and the lifestyle.”Adrian Gill (right), Director of Your Move and Reeds Rains, said, “The Brexit result won’t change the fact that huge numbers of aspiring first-timers want to buy a first home, and lots won’t want to wait out the two years until the renegotiations over the EU have been completed.“In the short-term, the wider market wobbles may benefit first-timers, giving them the leverage to negotiate harder and get a good deal.”post Brexit post Brexit vote property market referendum Bank of England first-time buyers July 3, 2016The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles 40% of tenants planning a move now that Covid has eased says Nationwide3rd May 2021 Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 Home » News » Housing Market » The Brexit effect previous nextHousing MarketThe Brexit effectIt’s that ‘turmoil’ word again, as the UK flounders in a mire of political pronouncements and predictions.The Negotiator3rd July 20160530 Viewslast_img read more