Steven Harvey Managing Director of Oasis Estate Agents –My thoughts on the market.
Where are we now?
Since the result of the referendum for the UK to leave the European Union was announced last week, a number of our buyers, sellers, tenants landlords and indeed friends and family have contacted me to enquire as to what is happening at the “coal face“ of the property market on a local level .
After waking up to the somewhat unexpected result on Friday morning and as news of the financial markets reactions circulated, quite honestly I expected the worst … as a business we have experienced many challenges over the years from the fallout of the last recession and banking crisis in 2007/2008, world conflicts, 9/11 and not to forget having to rebrand last year due to the terror organisation ISIS.I had anticipated a significant loss of confidence from buyers and sellers across all sectors in the market.
I am delighted to say that the reality though has been much more positive than we originally expected. The existing sales pipeline has held together virtually intact with only one withdrawal due to Brexit. The particular buyer runs a successful business which imports and has potentially been affected by the fall in the pound to the dollar. He has indicated however that if the market stabilises he will still proceed with the purchase so all is not lost! Enquiries particularly from first time buyers are dramatically increasing and so far this week we have agreed a number of sales. One at £592,000 with an asking price of £600, 000, and one on a house at an asking price of £900,000 which achieved £930,000. There’s confidence for you!
There are five other opening offers on the table £630k on £650k, 580k on £600k and £290K on £300k, £385k on £400K and £400,000 on £435,000.If we manage to negotiate all of these sales we will actually produce an above average numbers of agreed sales. Sellers are having to be slightly more sensible in their expectations but this will feed up and down the supply chain I am sure. I am sure this can be overcome by us as a company providing sensible advice, acknowledging concerns and offering a safe pair of hands for buyers, sellers, landlords and tenants.
I am not so naive as to think that “we are out of the woods“yet as potentially there could be an impact further down the line but 23 years of estate agency experience and as the local market leading agency for the past 12 years it has taught us that property prices and trends are very much affected by confidence. No market likes uncertainty, the housing market least of all, so it could be that we experience a period of hesitation until a strategy to manage Britain’s exit from the EU has been proposed –
It is not in the remaining members of Europe’s best interests to punish the UK for its decision and I am confident we will start to see the frame work of the future over the coming weeks and it seems very likely we will remain within the single market. It is in all the leaders interest to remain positive and negotiate terms swiftly. The great news is that the bank of England has offered reassurance as are the high street lenders who are all in good shape. A much more positive picture to 2008.
The UK has a strong and resilient economy and a long established property market which will continue to attract investment which together with an on-going fundamental lack of supply will keep demand and therefore prices strong. As always, we will continue to urge occupiers to focus on their long term property goals as this activity and investment will continue to drive the UK’s property market onwards and upwards. House prices have traditionally doubled every decade since the 1960;s and I see no change to this. Bricks and mortar is still a sensible and solid investment.
The economy has experienced many ups and downs since I started in the business in 1994 but our local property market has always proved to be very resilient due to its excellent geographic position with such great communications in particular Heathrow airport and is popular with a broad demographic of buyers and tenants. Demand for property continues to exceed supply and we therefore, foresee continued and sustainable growth following this period of doubt.
We appreciate that this may prove to be an uncertain time for many of our clients but as far as we are concerned (particularly with the positive initial feedback from our team), it is business as usual for us so please do contact me if I can provide any further help or advice on any property related matters.
My email is email@example.com and my mobile is 07799 887716, DD 01784 415442 alternatively you can pop into the office for a coffee.