Brexit: does it hail a rush on property sales in England?
Following the wake of Britain voting to leave the EU, the English housing market is unsure of where it’s going next, but despite widespread uncertainty it’s still a good a time as any to invest in property in the UK.The Independent
has already reported a surge in overseas investors “snapping up” London property at all-time low prices after the pound began to fall after the Brexit vote and many estate agents have reported up to a 50% increase in interest from buyers outside of the EU.
Good news for overseas buyers
Inside the EU, it seems equally positive news for foreign buyers and the concern over the future of the EU itself has got European buyers rushing to get their investments safely tied up in London property.
The Bank of England looks set to make strategic changes to combat the financial uncertainty, with the Governor, Mark Carney, hinting last week that interest rates are to be cut from the already historically low figure of 0.5%, spelling good news for borrowers.
Suggestions that house prices may drop
This increase in domestic buyers taking out mortgages could keep the housing market in high demand, but nothing is certain just yet.
Some sources including the Chancellor, George Osbourne, backed by the IMF, ratings agencies Moody's and Fitch and the Centre for Economics and Business Research, suggest that house prices will drop. But others say differently, with some experts suggesting the opposite to be true with house prices rising again when the pound levels out.
However, the story is not the same for commercial property, as this week we had stories emerging about overseas investors pulling out of these types of transactions.
Brexit effect remains uncertain
So it remains to be seen what will happen to the UK housing market, but for now, it seems a great time for overseas investors and domestic buyers alike to “snap up” a bargain property.
If you would like to discuss buying property in London following Brexit or are interested in how our conveyancing process can help to smooth the process of buying a house in England, give one of our experts a call on 0800 038 6446 and we’ll find your ideal investment for you. Alternatively you can get a free conveyancing quote online