Industry News

House prices to fall 5pc nationwide and tumble even further in London as worried home buyers back out

Publish Date: 21 July 2016

By Beth Fox

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House prices to fall 5pc nationwide and tumble even further in London as worried home buyers back out

Further reading

July 2016 EIG Newsletter - Latest property auction results now available

Online property auction success for Network E with bidding war of 88 bids

House prices and transaction levels will be hit by a "short, sharp shock for a quarter", as buyers pull out of chains amid the uncertainty that the vote to leave the European Union has created.

24 June 2016 - The Telegraph/Property

 

EIG commented:

“We have certainly witnessed a surge in house prices at auction in recent times, as demonstrated by the 13% increase seen in total auction revenues over the last 12 months. If transactional volumes do fall, as is predicted by many analysts, it will surely just be a short-term blip. There is still high demand for keenly priced lots among developers and investors alike, interest rates remain at record lows (and could fall further still), and auctions continue to provide vendors with a quick and uncomplicated route to sale."

(Tom Sheppard, EIG)

 

Property experts warned that chains could collapse as worried buyers pull out of transactions or invoke "Brexit clauses", which allow them to back out if they don't like the outcome of the referendum.

One Singaporean buyer pulled out of buying a £35m property in central London this morning due to fears of Brexit.
 

(Source - the telegraph/msn.com/news)

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