Brendan Roberts, Director of Aylesford International
“I don’t think anyone knows what is likely to happen yet.
I had an email on Friday immediately after the result from a Trust client based in Jersey who looks after some Middle Eastern clients, he said that London property is now 10% cheaper for buyers in the Middle East and as a result, anticipates a real appetite from ME buyers who are now planning to be in London in mid July as soon as Ramadan is over.
On the other hand I have an American seller, who is deliberating because he senses that the market is soft and uncertainty will mean that his Belgravia flat is unlikely to attract much interest. As a result of the Brexit result and the reaction of the markets and the weak pound, he has decided to hold onto it until he feels confident that the market is there.
In the past, currency ‘crisis’ interest rates have gone up sharply to bolster the value of sterling, but the papers are telling us that the Bank of England is ready to reduce interest rates to zero, therefore I don’t see any rush for the exit unless rates rise significantly, which really would create a problem and a correction in value.”