LETTING & ESTATE AGENT

5 ways in which Brexit is affecting the London property market

5 ways in which Brexit is affecting the London property market
On June 23, the majority of British citizens voted "for" leaving the European Union by choosing to immerse themselves into the unknown - consciously or not. Many residents of the UK woke up surprised by the news, others now regret their choice, while others hope for miracles. Regardless of what happens, experts from different fields have already developed plans for the near future, warning the world about the consequences of "Brexit".  Here's what you can expect to happen within the London real estate industry:

1. There will be more foreign buyers for whom the situation would be advantageous as the sterling has already considerably weakened.

The Head of Sales of Martin & Co Chelsea, Andy Sewell explains:

"We have seen a rise in newly registering buyers with weekly registrations at their highest level since April following a very quiet July post the EU referendum vote. The buyer profile for the early part of the month is expected to be from second home owners, especially from overseas taking advantage of the weaker pound and apartment buyers looking for a primary residence."

2. Property prices are likely to keep dropping which is a direct result of the steady decrease interest in  buying a home in London.

Ria Abidi, the Sales & Lettings Valuer of Martin & Co Chelsea advise sellers that wish to sell in the next three months to moderate their expectations on price in order to achieve this. However she also reminds them that they also should be able to negotiate more aggressively on their onward purchases.

3. We are currently building more housing for "ordinary Londoners" but after leaving the EU, this will change. We will build homes that are more luxurious and considerably more pricy and less affordable.

4. There will be fewer people wanting to take rental housing, but prices are likely to persist.

5. The real estate market will experience difficulties at first, but will recover quickly.
Andy Sewell further reveals that historically the family house market is slower this time of year but we expect registrations to increase later in the month after the holiday period . He says, "We are finding buyers are very price sensitive though at present and factoring in market risk and uncertainty to offer between 5 and 10% below where we would have expected offers to have been had the UK voted for business as usual. To sum up we are still feeling the impact of June's vote but there is still underlying confidence in London property as a long term store of value and supply issues mean that confident buyers are very much in the market to take advantage of this."