London vendors begin to ‘panic sell’ as housing inflation slows
While the wider UK property market appears to be holding steady since the Brexit vote, London is facing a free fall.
More than two months have passed since the UK voted to leave the EU and, so far, the fallout has not been as much of a disaster in the financial and property markets as the media speculated. Around the country, many estate agents have commented on the reduction of interest shown by buyers in properties currently being offered for sale – but while confidence has dipped, many property selling experts believe that this lack of confidence will be recovered by the end of the year in the majority of the country, but not everywhere.
Surprisingly, it is not the poorer areas of the UK such as the North East which are suffering – instead, it seems the capital is bearing the brunt of the lack of trust within the property market, according to a new report by property portal Home.co.uk.
As asking prices fall for the third month in a row, those thinking of buying in London are starting to get cold feet as house price inflation hits a low of 2.5%, with a forecast of 0% by the end of the year – driving many into negative equity. Data released by the study has also shown that further price drops are inevitable as the masses begin to ‘panic sell’ after the Brexit vote, leading to a market saturated with unsellable properties with unattainable asking prices.
“It is clear that the referendum result certainly unnerved many investors,” said Doug Shephard, director at Home.co.uk. “We will be keeping a particularly close eye on the London market over the next month, watching whether or not the surge in new listings becomes a stampede.
“This would inevitably lead to a home price crash in the region and stress mortgage lenders to the limit or beyond. Property investors would be well advised to weather the storm and not join a suicidal rush to market.”
The report, published this month, also suggests that foreign investment will take a blow, as news surfaces that those who have bought a home in London in the last 12 months are already likely to be in negative equity.
With the state of the London property market, it is clear that the traditional route of using an estate agent will not help those looking for a fast house sale, but luckily vendors can always approach property buying companies who are happy to buy any house for cash, regardless of the state of the market or the condition of the property itself.
Need to sell fast in or around the capital? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.