Guy Bradshaw, Head of Residential Sales at UK Sotheby’s International Realty, thinks yesterday’s defeat for May will hit the property market.
“It is disappointing to be left in limbo once again. As the domestic market continues to take a wait and see approach, international investors will undoubtedly capitalise on the plummeting sterling which is slipping off a near multi-week high. We’re expecting a spike in international buyers who don’t want to miss out on the great deals the currency play can offer. This ‘FOMO’ market will predominately be driven by pent up demand from dollar buyers which is currently very strong. We know that while the economy is looking weaker today, it will bounce back and by the end of 2023 it is forecast to be growing again, so these buyers are making a savvy investment.
“US buyers have been achieving discounts of up to 25% due to favourable exchange rates and in recent weeks we’ve also seen an increase in buyers from Europe who are looking to exchange before the end of March. Belgian, French, Italian and Dutch buyers are looking to get their money into London before the UK officially leaves the EU as they continue to see the market as a safe haven.
“The property market is resilient, but should this week’s debate conclude with Theresa May being ousted, we hope the Conservative party can form a Government that secures support from a majority of MPs. A General Election and a Corbyn-led government is highly likely to penalise the prime central London market and reduce the amount of valuable investment in property in the Capital. What we need to see to get the domestic market moving is consistent leadership and direction. We need some assurances and stability so people can start planning their future.”