BREXIT BOOST FOR UK PROPERTY MARKET

Figures released today by Douglas & Gordon show that while house prices in wealthier areas of London have been falling recently, they should start to recover once the result of this month’s vote is known.

George Franks, Area Director, said property prices would start to pick up at the end of June, after the referendum decision had been made.

“Buyers and sellers want a decision and when that decision is made the market will move forward,” he said.

Figures by Douglas & Gordon show that after the referendum was announced in Q1 this year, house prices in ‘Prime’ areas – which include Chelsea, Kensington and Notting Hill –dropped -0.84%, almost double the decrease from the previous quarter (-0.49%).

The uncertainty has also affected prices in Douglas & Gordon’s ‘Emerging Prime’ areas – which stretch from Hammersmith and Putney in the west to Balham and Southfields in the south. Prices in these areas rose steadily in 2015, averaging an increase of 0.62% per quarter, but in the first quarter of 2016, the rise was just 0.26%.

Franks said the dip in prices was unlikely to continue in the second half of the year and advised buyers to move now.

“There has been a lot of media speculation about what might happen to the market in the aftermath of the referendum and the uncertainty has made people nervous.

“But for the last two years, buyers have told us consistently they want a good selection of properties, a soft market, and cheap money.

“Right now, they have all three, and that gives them the opportunity to purchase at a better price than they would have been able to do so six months ago – and a better price than they’ll find in six months’ time.”