A high-end estate agency selling some of the country’s most expensive homes says the possible currency falls resulting from Brexit chaos would benefit overseas buyers looking for a home in prime London.
Guy Bradshaw, head of residential at UK Sotheby’s International Realty, says: “The biggest driver for London’s prime property market next year will undeniably be foreign investment by individuals looking to hedge their bets with the good currency play.
“Already … we have spoken to a handful of American investors who have proactively reached out to us following the Bank of England’s announcement. With the exchange rate potentially offering US buyers a 25 per cent discount on properties this could be one of the smartest times to invest in London.
“These buyers are predominately from Miami and New York and are unphased by the proposed foreign buyer tax as they know they will recover these costs when the market bounces back.”
Bradshaw says the Bank of England’s recent stress test scenario, saying that under a No Deal Brexit house prices could fall by up to 30 per cent, “is highly unrealistic.”
He says: “It’s unlikely we will be walking away from the EU without a deal so this scaremongering is doing nothing to help a market which is already stagnating under punitive stamp duty costs as well as political and economic uncertainty.
“The UK market is looking like a good deal right now to those buying with US dollars, these clients remember purchasing here after the Lehman's crash and have reaped the rewards of the market recovering in more recent years.
“Crucially, the BOE’s report states that by the end of 2023 the economy is expected to resume growing, so buyers now could be making a very savvy investment indeed if they are willing to hold onto their asset for a number of years.”
The Bank of England says that if Prime Minister Theresa May fails to get her Brexit deal past Parliament, it could result in the worst economic collapsee in 70 years.
The BoE ‘No Deal’ scenario suggests rising inflation and unemployments, falling growth and the pound dropping another 15 per cent against the US dollar on top of the falls seen since the EU Referendum in June 2016.