“The post Brexit effect certainly speeded up the summer recess and meant that in Prime Central London the property market tailed off sooner ahead of July.
This dormant period has perhaps lulled people in a false sense of security and the feelings about Brexit have faded away over the holidays, perhaps suggesting that it is not quite as bad as everyone made out initially.
The reality is that in central London people with a need or strong urge to move will, whether this is dictated by schooling, job relocation, or personal circumstances.
Good properties, priced at the correct market level, will sell; those that are not so good will sit around. Undoubtedly, Q4 will be a quieter three months than previously, as people wait, watch and see how the politicians handle negotiations and how the economy and market confidence fares. My feeling is that this is a good time for buyers to go in and make an offer and potentially drive a hard bargain – it is a buyers’ market.
While new buyers entering the market post Brexit and the summer will not be rushing in but playing a waiting game, old buyers who were in the market before the summer, will see this as a window of opportunity to return with a reduced offer.
The post Brexit period has granted agents a justifiable reason to advise their clients on where the true price should be if they are seriously minded to sell. They will be using this opportunity to have a realistic conversation with their clients owning houses in ‘grade A’ locations like Chelsea and Notting Hill. Right now they will be recommending that the asking price is too expensive and needs adjusting to reflect the price sensitivity in the current PCL market. Those that listen are far more likely to sell than those who do not.
Of course, aside from buyers and agents, the people determining property values in today’s market are the valuers, who remain overly cautious, creating a chicken and the egg situation.”