A new survey has revealed that 42% of UK estate agents feel the decision to leave the European Union has already had a detrimental impact on their business.
Further data from the report by software supplier Dezrez has revealed that one agency has recorded a 40% drop in valuations already.
Brexit falls
One-third of respondents predict that there will be between 5%-20% fewer properties on the market as a result of the Brexit vote. In addition, homeowners could see the value of their properties fall between 5%-15%.
52% of estate agents queried feel that vendors or buyers will fall out of potential sales. On the other hand, 53% said that they had seen no impact to date, with 37% believing the vote result will not have a long term effect on their business.
Interestingly, only a few estate agents have fully prepared for the ‘leave’ vote. 54% feel it is too early to devise a strategy. 16% said they had a plan, with 13% saying they are currently working on one.
Caution
Chief Executive of Dezrez, Justin Morris, observed, ‘as the economic landscape continues to shift following the UK’s vote to leave the European Union, the Bank of England Governor Mark Carney has warned prospective buyers to proceed carefully if planning to borrow money.’[1]
‘This warning and the ongoing analysis from property professionals, is unsurprising. However, until the market settles, we won’t know the exact extent the effect Brexit will have on the residential property market. What is clear is that in the short term uncertainty will lead to a dip in market confidence,’ Morris continued.[1]
Estate agents concerned on Brexit impact
Savvy success
Morris went on to note that while opportunistic buyers could look to negotiate a bargain, savvy buyers will look at the economic effect on their finances. Many estate agents feel there are still more buyers than sellers in the market. With a reduction in housing stock likely, the market could move to even out.
Concluding, Morris said, ‘the role of the estate agent will be increasingly important to vendors and buyers alike. Negotiations may become trickier and sales progression more complex, consumers will rely heavily on traditional estate agents for their experience and advice. There is no doubt that there are challenges and opportunities ahead.’[1]
[1] http://www.propertywire.com/news/europe/uk-estate-agents-brexit-2016070712117.html