Anthony Pears of Lurot Brand
The Brexit result is essentially the catalyst for the actual correction in the market. Over the last 24 months, achieved sale prices have remained relatively constant in our market – asking prices certainly came off a little and the number of transactions has declined. Vendors who do now need to sell are more likely to cast their optimism aside and ask a more enticing and realistic asking price, which may well result in the actual correction in achieved sale prices taking place.
At £3,300,000 this house was priced optimistically. With a ‘Remain’ vote, the view was that this may well have been achieved in the back end of this year. However, the vendor is motivated to sell, ideally requiring the assets to complete an onward purchase. Given the Brexit vote he is taking a more realistic approach and has reduced the price by 10%, which now makes it an extremely attractive opportunity when compared to other available stock, where the vendors are less motivated.
Given the lack of motivated vendors often with little or no borrowing in the area, our view is that a shortage of supply is going to hold prices fairly strong for the foreseeable future. Owners of property in Central London are very aware that in the long term prices have historically gone up and up with corrections that come from time to time. So unless they have a clear need to sell they simply won’t.”