Tom Ferguson (Sales Manager of Drewery Property Consultants) gives an update on the local sales market:
Certainly in London the Brexit result came as a shock, alongside the turmoil in both major political parties and predictions of doom and gloom in the media, this was hardly conducive to confidence in property.
However, it is still very early days. The world will keep spinning and people will always need somewhere to live. Negotiations will most likely be very lengthy with the EU, and probably will not start for a while, so for a period of time there should be no significant changes that are likely to affect property in the UK or our own local propertymarket. The property market is always remarkably resilient and will adjust accordingly. The facts are that in the UK we have a surplus of demand over supply in both the owner occupier and rental sectors. The referendum vote will not change this position.
Furthermore, the Governor of the Bank of England, has also indicated that we could even see a reduction in the bank base rate, which can only be good for property. Mortgage interest rates are also commonly fixed for two to five years by buyers and so, whilst they may become marginally more expensive in the months ahead, they are unlikely to adversely impact on affordability and people will not feel the effect, if any, for some years by which time the way forward outside the EU will be much clearer.
Property prices were always likely to stabilise this year in the local areas simply because they had risen considerably over the last few years. There had been a tendency by some to assume property values would rise forever, we have seen some small asking price adjustments, but this is not due to the referendum result and was happening anyway.
The Rightmove house price index reported an annual price change of +12.3% in June for Bexley and a monthly change of +0.6%. The neighbouring borough of Bromley witnessed a +0.1% monthly change in property prices. Greenwich witnessed a -3% drop in property prices again confirming that the property market is still behaving very different in each London Borough and perhaps prices are levelling out in most.
The immediate signs of activity since the referendum have been encouraging and, as always, If you are planning your move and would like to discuss the potential value of your property, then please call us for an informal no obligation market appraisal on 020 8300 6761 or email me firstname.lastname@example.org.Alternatively, why not use our free online valuation tool to obtain a guide on the potential value of your property and we can then come and see you at a later date to confirm the guide value.