A sharp fall in the value of the UK pound against the euro, after Britons voted to leave the EU, will be seen by international property investors as a great opportunity to acquire bricks and mortar in Britain, according to various experts.
Eurozone buyers, for instance, have gained a €50,900 (£41,380) discount on the average London house price in the wake of the EU Referendum result, according to new analysis from London estate agents Stirling Ackroyd.
The depreciation in sterling, down by around 6.6% against the euro since Leave won a narrow victory last week, means that the average price of a home in London now equates to €579,200 – compared to a record high of €630,100 in November 2015. This change amounts to an 8% discount within London’s residential market.
Andrew Bridges, managing director of Stirling Ackroyd, commented: “European buyers can now snap up real bargains across London. Overnight London has become a more affordable global property hotspot – particularly for those paying in euros.”
The decline in the value of the UK pound and a potential slowdown in house price growth could boost activity in the housing market, according to Simon Barry, head of new developments at Harrods Estates.
He commented: “Any sharp fall in sterling will be seen by investors from around the world as a buying opportunity, which if followed by a much-needed moderation in prices will kick-start a recovery fuelled by domestic demand - assuming interest rates stabilize quickly.
“The big unknown is whether London will ultimately retain its status as a world financial and business capital outside the EU – we hope so and assume prices and confidence will recover from any set-back.”