House sales have fallen through and prices have dropped mid-sale because of Brexit, posts on social media suggest.
Since Britain voted to leave the EU, Twitter users have been consistently posting the effect of the Leave vote on individuals’ house sales.
Examples are:
- Neighbour’s house sale just fell through with buyers citing Brexit economic fears
- Colleagues house sale fell through on Monday after investor buying demanded 10% off due to #Brexit
- UK friend of mine has just had her house sale fall through – buyer now too nervous about their post-Brexit financial stability
- We agreed a sale on our house 3 weeks ago. Now our buyer wants us to drop the price by £46K or he will pull out. Thank you #Brexit NOT
@NiS4r Jun 27
Elsewhere, agent Benoit Properties International said “the market may not be as favourable for domestic buyers” but it was an “unmissable opportunity” to bring foreign investment into UK property.
The firm has seen a surge in interest in UK property from places such as the Middle East, Hong Kong and other countries fixed to the dollar following the devaluation of the pound since last Friday.
“UK property is now more than 10% cheaper in dollar terms than it was on Thursday night and for clients buying for the long term this presents huge opportunity,” said the firm’s Matthew Lavin.
“Over the weekend we sold six apartments in The Exchange Building in Liverpool to a group of buyers from Saudi Arabia who had seen the news about the falling pound and seized the opportunity.
“They saved around $130,000 collectively compared to what they would have spent on Thursday night.”
The Evening Standard also reported that buyers were pulling out of house sales following the Leave vote but said overseas investors were “swooping in”.
The publication quoted sales director Guy Gittins from agent Chestertons – which lost three deals in an hour on Friday – as saying: “We lost some deals but we gained new deals because of overseas investors so the net result by end of trading on Friday was about even.”
The Guardian reported on Saturday one property developer in central London had offered a “Brexit clause” to nervous buyers ahead of the referendum, which allowed them to pull out of purchases with a Leave vote but still able to keep their deposits.
David Humbles, managing director of the luxury Two Fifty One development, said: “We can confirm that a few purchasers have decided not to proceed given the uncertainty of the market.
“However, the majority are continuing with their purchase and the marketing strategy to offer the pledge at the launch was a worthwhile exercise.”
So far just one fall through at my branch directly attributable to Brexit vote. My local HSBC put the boot in when the buyer’s mother called to arrange withdrawal of deposit funds. When asked what she was proposing they told her that it was “a bad time / house prices falling/ if you must then renegotiate the price”. Totally spooked her so they tried a £10k renegotiation on an agreed £160k purchase and got told “NO!”. First reaction is they are creating a self fulfilling prophecy.
Given the experiences of a few years ago where would you put your money? In a bank or property?
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Anyone who is told they want to re neg a sale due to brexit should remember two things
A: They still want to buy the property
B: Brexit is an excuse to leverage the price doesn’t mean you have to !
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Singaporean Bankers have today called a moratorium on London property loans The Nine Elms effect lowering all boats.where Singaporeans have been aggressive investors Until recently Kuala Lumpar has been the first port of call on Asian sales trips by London developers Many would have left financing til prractical completion and others looking to refinance A Singapore Sling on the resales market likley and the falling £ only helping to mitigate the sitiuation
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“Colleagues house sale fell through on Monday after investor buying demanded 10% off due to #Brexit”
Mr/Ms Buyer, who are you to demand anything?
I’m delighted to hear the sale fell through – it meant the seller didn’t budge.
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“Unmissable opportunity” You got to love investment companies. Always looking for the upside regardless of how shallow. I have a number of investors who have now switched their investment plans from the UK and Europe to the US. It’s currently the only game in town for international investors.
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“PEOPLE TAKE TO TWITTER…” 4 people take to Twitter.
I’m not really sure what the purpose of this story is.
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