With less than a year until Britain is expected to leave the European Union, it appears that the impact of Brexit on the property market is still being felt.
According to the figures of Winkworth estate agents in London, sales have increased by 12.5% in the first quarter of 2018 when compared to the same period the previous year.
However, they are still some 22% below the 2014 peak. That indicates sentiment is improving but there is still some way to go for things to return to ‘normal’.
Dominic Agace, CEO of Winkworth, said “Following what has been a more stable market in central London over the past year, it seems as though we have hit a slightly tough patch as we move through the second quarter, making the foreseeable future difficult to predict.
“Brexit looms ever closer which appears to have knocked the usual peaks and troughs of the market and is causing would-be buyers, and particularly investors, to put a hold on their plans to purchase,”
Landsec Also Issue Brexit Warnings
The UK’s largest listed property company, Landsec, have also issued their own warning about the impact of Brexit of a subdued property market.
Announcing it’s annual results, Chief Executive Rob Noel said the group was “navigating uncertain waters” amidst falling revenues for the company.
“The retail market is tough, particularly since the referendum,” he said. “But we have completely repositioned our retail portfolio over the last three years to focus on destination shopping centres.”
“The elephant in the room here is that the UK is leaving the European Union in March next year,”
He went on to suggest that the market was relatively stagnant as people appear to wait to see the result of Brexit on the housing and financial markets.
This echoes the sentiment of Dominic Agace from Winkworth who went on to conclude “The key message we are giving sellers now is the importance of pricing realistically.
“Considering that the market is being driven first and foremost by pricing, homes that are priced correctly are selling well, but vendors must be educated properly on the market to understand that.
“Although slightly unpredictable at the moment, we are expecting the market to remain unchanged for the rest of the year, while sentiment remains cautious and many buyers and sellers wait to see the full effects of Brexit.”