Hani Madanat, Founder and Director of Coombe Residential, considers the Brexit effect.
As I write this, the rain is coming down and the nation is waiting on the results of the Parliamentary vote at the ‘last chance saloon’ to decide on a deal or no deal Brexit. This past year I find I’m constantly being asked by buyers and clients alike ‘so what’s the property market doing at the moment, is Brexit having any effect’?
Well the short easy answer would be ‘Yes’ as there is a “wait and see” approach by vendors but Brexit is not entirely to blame for this. The rise in Stamp Duty has also meant more people choosing to stay put rather than move, homes taking longer to sell and stiffer regulations for money laundering are all contributing to slowing down the flow of new property instructions onto the market.
But despite all of this there is a positive side because all of our new instructions are from clients who are really serious about selling and with evidence of an increasing shift in balance in favour of applicants looking to purchase and with mortgage lenders keen to do business with excellent product rates, plus a weaker pound tempting in overseas buyers, there has never been a better time for buyers.
Uncertainty however remains, not only politically, but in the wider economy affecting confidence. With the shortage of properties available, those people looking to move, who find a property ticking the boxes in terms of price, location, transport links, schools and local amenities, then I would advise seriously considering putting forward an offer to purchase.
And as if to prove this point, right on cue, this afternoon as the sun started to emerge I had news from two of my buyers informing me they have accepted near asking price offers on their properties. This past month Coombe Residential also have offers agreed on two clients’ properties and, in both sets of circumstances, the properties had realistic guide prices. So provided vendors acknowledge the market conditions and continue to be realistic the buyers are out there.