Homebuyers pull out of deals following Brexit vote

June 28, 2016 by Brendan O'Neill

Property Market

The housing market is left with uncertainty as the UK votes to leave the European Union. Cautious buyers are pulling out of deals, reducing offers and freezing deals, until the effects of Brexit are known.

A London property developer had offered buyers a clause which would allow them to come out of deals if Britain voted to leave the EU, without losing deposits. The managing director of Two Fifty One, David Humbles, said that although a few buyers had decided to withdraw their offers, most had decided to continue with their house purchase.

KPMG, the consulting group, forecast a price drop of 5% outside the London region, while others predict larger falls in price. Some buyers who may be faced with negative equity if house prices fall, have withdrawn offers.

However, other estate agents around the country have reported that interest from buyers has increased, now that the uncertainty of the vote has been removed and the value of the pound has fallen slightly. According to some agents, the falling value of the pound will attract greater interest from international buyers, which is especially good news for London vendors.

The Scottish property market has seen an upswing in interest, as potential buyers seek homes in a country which voted to remain within the EU. According to property website Rightmove, the number of people searching for homes in Edinburgh had increased by 250% overnight, following the referendum vote.

Mortgage advisers may find that demand for their services will increase, as buyers try to decide whether they should continue in their search for a home. As mortgage advisers are CeMAP qualified, they will have all the relevant facts required to help buyers decide.