House prices: Eurozone buyers blag Brexit-boosted bargains
06-23-2016
EU referendum's hit on the pound means buyers from the single currency zone have saved an average £26,000
House prices: Eurozone buyers blag Brexit-boosted bargains
Britain might be on the verge of leaving the EU, but buyers from Europe are still rushing into London property.
Furthermore, they are bagging bargains at the moment due to the currency fluctuations in the lead up to tomorrow's referendum.
London estate agents Sterling Ackroyd said a slump in the pound, caused by Brexit jitters, meant buyers from Eurozone countries were saving an average of £26,000 on property in the capital, reports City AM.
"European buyers are snapping up bargains across London," said the company's Andrew Bridges.
Average prices in the capital, based on recent ONS data, stand at €596,900. In contrast, last November, when a Remain win seemed certain and the euro was weaker against the pound, this was around €630,100.
The effective fall of €33,200 amounts to a saving of £25,500, or 5.3 per cent.
UK house prices have been a feature of the referendum campaign. On the Remain side, Chancellor George Osborne warned of a potential 18 per cent fall in the two years following Brexit due to an economic shock and declining overseas demand.
Leave barely dispute the figures, but has attempted to turn them to its own advantage, claiming a fall will make property more affordable for young people.
However, in London, the most unaffordable region in the UK, a further plunge in the pound might offset this effect – and several experts believe sterling and the euro could reach parity.
"If Britain votes to leave the EU, sterling is set to fall further, so ironically, London would become even more affordable - and therefore more attractive - to overseas buyers paying in euros," added Bridges.
"While eurozone buyers are propping up the temporarily soft market as prices stutter, Brexit might make Europeans much more significant players in London's property scene."
UK house prices hit record level again
20 June
House prices in England and Wales have risen to record levels again in June, despite signs of market jitters ahead of the EU referendum on Thursday.
Property website Rightmove said average prices hit £310,471 - up 0.8 per cent - between May and June, 5.5 per cent higher than in June 2015.
However, prices in London dipped 0.2 per cent for the month, although valuations, at £643,117, were still higher than anywhere else in England and Wales and well above the £470,025 estimated in official government figures last week.
The Independent reports that property in the capital has been hit by the uncertainty surrounding Britain's vote on EU membership on Thursday. The Leave camp moved ahead in recent polling, focusing attention on warnings that Brexit will cause a sharp fall in house prices and reduce demand from overseas buyers.
Rightmove also noted the increase in stamp duty on higher-end properties from December 2014 and for landlords from this April.
However, elsewhere, EU referendum uncertainty could be exacerbating a supply imbalance that is supporting higher prices. The Daily Mirror reports Rightmove figures showing the number of sellers coming to market was down 5.3 per cent in June, despite continued soaring demand. The average property now sells in 57 days, the fastest rate since the website began tracking sale times in 2010.
Director Miles Shipside said: "If you're debating whether to trade up and make a big financial commitment, you naturally might hesitate before putting your property on the market just a few weeks before you know the vote outcome."
The Wall Street Journal says the shift in London could become a longer-term trend that reflects how unaffordable property in the city is for most of its workers.
"Concerns about affordability, after seven years of near-continuous price increases, have spread from suburban dinner tables to City of London conference calls," it says.
"Crest Nicholson, a listed house-builder, told analysts [on] Tuesday not just that it [is] having to work very hard to sell homes in central London but also that it was “a little bit concerned about pricing in outer London."
Britain might be on the verge of leaving the EU, but buyers from Europe are still rushing into London property.
Furthermore, they are bagging bargains at the moment due to the currency fluctuations in the lead up to tomorrow's referendum.
London estate agents Sterling Ackroyd said a slump in the pound, caused by Brexit jitters, meant buyers from Eurozone countries were saving an average of £26,000 on property in the capital, reports City AM.
"European buyers are snapping up bargains across London," said the company's Andrew Bridges.
Average prices in the capital, based on recent ONS data, stand at €596,900. In contrast, last November, when a Remain win seemed certain and the euro was weaker against the pound, this was around €630,100.
The effective fall of €33,200 amounts to a saving of £25,500, or 5.3 per cent.
UK house prices have been a feature of the referendum campaign. On the Remain side, Chancellor George Osborne warned of a potential 18 per cent fall in the two years following Brexit due to an economic shock and declining overseas demand.
Leave barely dispute the figures, but has attempted to turn them to its own advantage, claiming a fall will make property more affordable for young people.
However, in London, the most unaffordable region in the UK, a further plunge in the pound might offset this effect – and several experts believe sterling and the euro could reach parity.
"If Britain votes to leave the EU, sterling is set to fall further, so ironically, London would become even more affordable - and therefore more attractive - to overseas buyers paying in euros," added Bridges.
"While eurozone buyers are propping up the temporarily soft market as prices stutter, Brexit might make Europeans much more significant players in London's property scene."
UK house prices hit record level again
20 June
House prices in England and Wales have risen to record levels again in June, despite signs of market jitters ahead of the EU referendum on Thursday.
Property website Rightmove said average prices hit £310,471 - up 0.8 per cent - between May and June, 5.5 per cent higher than in June 2015.
However, prices in London dipped 0.2 per cent for the month, although valuations, at £643,117, were still higher than anywhere else in England and Wales and well above the £470,025 estimated in official government figures last week.
The Independent reports that property in the capital has been hit by the uncertainty surrounding Britain's vote on EU membership on Thursday. The Leave camp moved ahead in recent polling, focusing attention on warnings that Brexit will cause a sharp fall in house prices and reduce demand from overseas buyers.
Rightmove also noted the increase in stamp duty on higher-end properties from December 2014 and for landlords from this April.
However, elsewhere, EU referendum uncertainty could be exacerbating a supply imbalance that is supporting higher prices. The Daily Mirror reports Rightmove figures showing the number of sellers coming to market was down 5.3 per cent in June, despite continued soaring demand. The average property now sells in 57 days, the fastest rate since the website began tracking sale times in 2010.
Director Miles Shipside said: "If you're debating whether to trade up and make a big financial commitment, you naturally might hesitate before putting your property on the market just a few weeks before you know the vote outcome."
The Wall Street Journal says the shift in London could become a longer-term trend that reflects how unaffordable property in the city is for most of its workers.
"Concerns about affordability, after seven years of near-continuous price increases, have spread from suburban dinner tables to City of London conference calls," it says.
"Crest Nicholson, a listed house-builder, told analysts [on] Tuesday not just that it [is] having to work very hard to sell homes in central London but also that it was “a little bit concerned about pricing in outer London."