Brexit: 'Foreign money will pour into London's property market' according to expert

Foreign money: Investors see a 'currency window' to do business
Joe Newman/SWNS.com
Joe Watts28 June 2016

A flood of foreign money will pour into London’s post-Brexit housing market, according to one of the capital’s oldest property agents.

Foreign investors are apparently seeing huge savings after the value of the pound plummeted following the leave vote.

Luxury estate agent John Taylor said since referendum, they have received higher offers on property than all other offers made since the start of the year.

John Taylor managing director David Adams said: “I was inundated with more calls from the Middle East on Friday than any other day of my career."

Mr Adams said he fielded a number of calls from Jordan, Saudi Arabia, Kuwait and Dubai and had interest from Monaco, France and Switzerland.

He believes that investors are interested in doing business within what they see as a currency window, before the pound recovers value.

He added: “The currency which fell over 11 per cent against US backed currencies appeared a major incentive as the speed of transaction became more important than the price.”

According to Mr Adams, the current property market is back to where it was in 2009 when a collapse of the pound against the Euro made investment in London a safe haven during concerns about a Greek default.

Market regional director of agent Anscombe & Ringland Robert Bixby said that while some domestic buyers were waiting to see the impact of Brexit, overseas buyers were making up the demand.

He added: “Over the past three days we have seen a significant rise in the activity from those overseas investors.”

This contrasts with other news from the sector, with estate agent Foxtons yesterday issuing a Brexit-linked profit warning and some big planned developments in question.

Foxtons CEO Nic Budden said: “The result of the referendum has increased uncertainty.”

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