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London Sees Sales Jump 38% in the Week Post-Referendum Vote

Sales volumes in prime central London property market increased 38% in the week after the UK voted to leave the European Union as savvy investors benefitted from weaker prices.

Sales volumes in prime central London property market increased 38% in the week after the UK voted to leave the European Union as savvy investors benefitted from weaker prices.

According to data from Knight Frank, sales during the last week of June – the aftermath of the referendum results – increased 38% compared to the previous week and 29% higher compared to the last week of May.


Knight Frank also reported that average prices across prime central London eased in the month of the referendum, declining by 0.2% - the lowest result since November 2014.


Lower prices and rising economic and market uncertainty following the referendum vote motivated vendors to reduce asking prices over recent months, says the firm.


Lower asking prices resulted in an “uptick in activity”, which was most noticeable in the immediate aftermath of the referendum result.


Figures from a separate Knight Frank’s report, in fact, showed that the number of new tenants registered in June was the highest since September 2015, and the number of viewing was the third highest on record.


Although, driven by higher stock levels and uncertainty in financial markets, the annual rental growth in prime central London fell by 3% in June – continuing a decline witnessed in the months ahead of the referendum.


The outlook for London’s prime markets are said to be difficult to gauge as the referendum is likely to affect investor sentiment but the prospect of lower mortgage rates could help boost the property market.


Tom Bill, Head of London’s Residential Research, said with regards to these figures: “Political uncertainty in the UK will undoubtedly weigh on sentiment, and will be likely to last until at least the heads of terms of the new relationship between the UK and the EU are agreed.”

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