A high-end estate agent who was one of the founding directors of Agents' Mutual says a British exit from the EU may not be harmful to the domestic housing market.
Trevor Abrahmsohn of London agency Glentree says in his latest blog that although it would take “a little time” for the dust to settle after a No vote - including the possible installation of a new prime minister - “there is no reason to believe that the prevailing economic policies will change very much.”
Abrahmsohn writes: “I firmly believe that there will be inward investment from multi-national companies and investors (such as Nissan, Honda, IBM, Ford, Google, Microsoft etc.) who will want to benefit from the new Social Contract and relaxed labour laws that will be introduced in the period after the Referendum that will enable the UK economy to ‘spin faster’ once it is free of the ‘shackles’ of European regulations which has served to slow our progress to date.”
He even suggests a new prime minister post-Brexit may even wish to reverse some of the stamp duty changes impacting on the top end of the housing market now.
Dominic Agace, chief executive of franchise network Winkworth - which has many of its branches in London - says in his blog: “The UK and London in particular has always had a draw for foreign investment, not only from Europe but much further afield, and I would expect this to continue whatever the outcome, especially as people come for many reasons including schools and the lifestyle."
However, a Brexit could have a knock-on effect on house prices if it led to a reduction in inward migration from Europe according to Winkworth’s international department head David King.
"There may be implications for UK buyers looking in mainland Europe should we exit the EU. If, following an exit, extra rules were introduced for British buyers such as visa or money checks then the process could be more difficult” he cautions.
And Russell Quirk, founder of online agency eMoov, says a Brexit would lead to uncertainty amongst the UK public, and so reduced transaction volumes.
“We believe [prices] could easily drop by five per cent - maybe more - so the average UK homeowner could see their property reduce by £11,000 in value” he says.
In recent weeks we have reported Cluttons saying the central London high-end market may stagnate between now and the referendum because of uncertainty. And a survey by Carter Jonas, including commercial as well as residential experts, shows 65 per cent of the property industry opposed to a Brexit.