House prices stable after Brexit as weak pound sees ‘bargain’ prices for foreign investors

FOREIGN buyers are rushing to scoop up 'bargain' homes in London, after the vote to leave the European Union (EU) triggered a currency discount worth tens of thousands of pounds.

The pound immediately weakened against the euro following the outcome of last week's vote to touch 30-year lows.

It means buyers from the continent have seen prices in London fall by the equivalent of £40,000 (€50,900) compared to seven months ago, according to estate agent Stirling Ackroyd.

Andrew Bridges, managing director of Stirling Ackroyd, said: “European buyers can now snap up real bargains across London. Overnight London has become a more affordable global property hotspot – particularly for those paying in Euros.”

The pound has also fallen against the US dollar, meaning American buyers can now buy a home in Britain at around a third less than a year ago.

International property portals are now reporting a surge in enquiries about homes in London.

Managing director of Properstar Shameem Golamy, said: "Following the Brexit announcement last week, we recorded a 50 per cent spike in searches for property in London and we expect this to be a continuing trend, especially whilst conditions for international buyers look so favourable."

“Following the decline in sterling, we heard reports from agents of international buyers rushing to conclude property deals."

Sellers in Britain have been urged to consider foreign buyers when looking to get the best possible price on their home amid signs nerves could hit the market in the short term.

n the longer term, however, a shortage of supply is expected to sustain prices.

Mr Bridges added: “After the shock of the referendum, calm will return to the market and people will see the bright lights of London are undimmed.

“London’s reputation as a valuable property investment hotspot remains undiminished and the capital will continue to attract an abundance of potential buyers. 

"London will retain its global capital city status.”

 

Source: Express