London agent Douglas & Gordon has announced a leap in both sales and new instructions in the week after the Leave vote.
Instructions nearly trebled compared with the previous week, while sales increased by 11%.
Many of the deals were struck by people taking advantage of the weak pound in the immediate aftermath of the shock result.
At the current sterling/dollar exchange rate of US$1.31, London’s so-called “merging prime” areas are now 25% cheaper than they were two years ago.
Douglas & Gordon offices reported interest from applicants based in Nigeria, USA, UAE, Russia and China – all of whom are buying in US$ and most of whom were interested in property priced between £1m and £2m.
Since the start of the year, Douglas & Gordon Corporate Services has received 24% more enquiries from relocation agents, reflecting a year-on-year increase in the number of corporations looking to move employees to London.
Enquiry levels last week, following the Brexit result, were at their highest since the start of the year.
Douglas & Gordon CEO James Evans said: “Politically we may be in uncharted waters. However, many of our clients who delayed listing their property until June 24 were simply waiting for a result one way or the other.
“London property transactions happen for a variety of reasons and our experience is that those who are wanting or needing to buy, sell, rent or let will continue to do so.”
Outside London, Berkshire-headquartered Romans said that in the week after the Brexit vote, just 20 deals out of 900 sales agreed were cancelled.
The firm said that was only marginally more than during a normal trading period.
The firm also recorded an 8% increase in traffic to its website in the week after the Leave vote.
Romans managing director Peter Kavanagh said: “I strongly believe that in six months, if not before, we’ll be looking back and wondering what the fuss was all about.”
In Essex, Beresfords said a property put up for sale on the Monday after Brexit day has had 11 viewings and a full-price offer. Another of its properties, a probate sale which could not be viewed until after June 24, has had 18 viewings and five offers.
Adam Hesse, of Aston Mead Land & Planning, said that in the last 12 days he has not had a single land deal pulled, and he called for the industry to unite to send out positive signals.
He added: “There is a danger that people will believe the warnings and then it becomes a self-fulfilling prophecy.
“It was a democratic decision, so we have to abide by the outcome and move on. In effect, we’re all Brexiteers now. All this talk of a second referendum is only making things worse. The result on the day was conclusive. What if a second vote went the other way?
“What do these campaigners want – the best of three?
“The reality is that we’ll be leaving the EU and our job in the property sector is to help the transition work as effectively as possible. That means we need an end to scare stories and doom-and-gloom scenarios.”
Of course there is a spike in listings. People are bailing before the absolutely inevitable price reduction starts to come through.
Are agents really telling purchasers that in 6 months the UK will be in the same position as we were, and wondering what the fuss was about?
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the story is that sales are up as well nitwit.
Very surprised.
This is why brexit was voted in and London still wins….. govt really need to sort this imbalance and quickly.
Maybe anyone outside 20 miles of london pays just 10% in tax and vat is 15%….
london is another country compared to the rest of uk.
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So selling more London property to buyers in Nigeria, UAE, US, China & Russia who will likely leave these houses empty, is seen as a measure of success . How sad.
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Taking into account that the Estate Agent receives instructions from the owner of a property to sell it – then yes – job done successfully as required.
Show me one owner who gives their Agent specific instructions to sell their property to a UK national who will live in the property for a minimum of 48 weeks of the year and I will reserve the right to review, amend or withdraw the above statement.
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Note the buyers are not from the EU and many weren’t before Brexit.
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No wonder we are considered an untrustworthy industry.
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Nigeria= money laundering
China = Passport (bring in 1 mill for uk passport)
Russia = Investment
UAE = university UCL, Imperial etc
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Whether the above story lines up with your thinking on who constitutes the right buyer, the message should be the same within our industry to prevent mass hysteria and a recession by worry. I operate in the North of England and we had no fall throughs following the result and the last two weeks has been slightly better than last year same two weeks in all aspects. We dont sell to any other nationality generally its all local(ish) buyers. If all of the commentators above are agents then you are quite clearly (PeeBee excepted) part of the worry crew and possibly creating a market that no one wants. Its bad enough that the country voted out but lets not put fuel on the fire as well..
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Agents may have tons of instructions, however, where are the buyers!? Leads have been down since Brexit…
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