Rob Stoyle, one of the Partners at Helmores Estate Agents, comments:
It’s my strong view that the market and property prices in this area will remain stable. When you think about it, we haven’t experienced the insane London price increases created by wealthy foreign investors snapping up over a £100 billion of property over the past few years. So IF there is to be a correction in the market there’s little doubt where it will be.
The bottom line is this: People need to move home – for whatever reason. Let’s not forget that a property has a function – it provides shelter and keeps the rain out – a home isn’t just an investment: It’s also a dream, a lifestyle, a goal, and to be bluntly honest us Brits are obsessed with property.
Whilst the uncertainty of Brexit might diminish this love affair, it will return – probably much sooner than people think. After all, the sky hasn’t fallen in and media hype and initial fears of the unknown will only keep a lid on things for so long.
Many experts are predicting interest rate cuts which will lead to cheaper borrowing: Adam Tyler, chief executive of the National Association of Commercial Finance Brokers says: “Sentiment may have shifted dramatically over the past few days but the structural imbalance between supply and demand is as strong as ever. The fact that the bank rate is now more likely to go down than up in the near term will provide further support to the property market. Understandably, there’s a lot of hysteria surrounding the trajectory of the property market, but our own view is that the reality will prove to be relatively benign.”
A week on, the FTSE 100 has fought back to recover all the ground lost since last Thursday, and the pound on the rise too.
The message from Helmores is keep calm and carry on!