A vote by Britain to leave the European Union would be the saviour of the beleaguered high end housing market according to a leading London agent.
David Adams, managing director of the London office of international agency John Taylor, says the flurry of comments from within the property industry about the alleged dangers of quitting the EU are simply wrong.
He says there are two over-riding reasons why a ‘leave’ vote would help.
“Firstly there is unanimous agreement that the Pound would fall, making property relatively less expensive to international buyers. The London market would simply take off in that case - it’s already improved because Sterling has dropped on the uncertainty of the referendum” Adams told Estate Agent Today.
“Buyers from places like Italy, where there may be political and economic uncertainty about the EU and the Euro should Britain vote to go, would look to London to buy property as a hedge against further economic problems” he says.
Adams believes this scale of uncertainty and currency weakness by Sterling would last up to two years; he claims the Pound would eventually stabilise, but at a lower level than in recent years, making property more attractive internationally.
“Secondly this increased attractiveness of prices with a weaker Pound would go some way to redress the balance. Britain now has some of the world’s most expensive property transaction charges and property taxes, so anything to counter that would help London’s property market from decline” says Adams.
Meanwhile the London-based buying agency Black Brick says the capital’s high end market will be unaffected by the referendum result.
“London is going to retain its attractiveness to wealthy international buyers regardless of whether the UK remains in the EU; its cultural attractions, geographic location, legal system, and concentration of talent mean that there will always be demand for prime central London property” says managing partner Camilla Dell.