Following the results of the European Union referendum, property price rises in many parts of the country are slowing down or falling.
Several property specialists have commented on how the property market is being affected by Brexit. Richard Donnell of property consultant Hometrack said:
“The immediate impact is likely to be a fall in housing turnover and a rapid deceleration in house price growth as buyers adopt a wait and see [attitude for] the short-term impact on financial markets and the economy at large.”
Jan Crosby of financial advisers KPMG UK has predicted that house prices would remain deflated for the next few months.
Shortly before the referendum, The Royal Institution of Chartered Surveyors reported a slowdown in property sales due to the uncertainty about the EU referendum result. Now that the result is known, that uncertainty has been removed, but Andrew Reeves, head of a London estate agents, said that many buyers are waiting to see if house prices will fall further before buying.
At the luxury end of the market, the weakening of the pound could mean that more European and USA investors will buy high-end properties. Peter Wetherall, who heads a London Mayfair estate agent, said:
“Already sterling has plummeted to a low not seen since 1985 and this will now create a short-term buying opportunity for US dollar- and euro-based property investors.”
With the availability of low-interest bridging loans and property prices deflated, many property investors consider this a good time to invest in the UK property market.