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Yes to Brexit: Industry Experts Weigh In

Insights on what it could all mean for luxury sales in London

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Britons unexpectedly voted in favor of a Brexit

DANIEL SORABJI / Getty Images
Britons unexpectedly voted in favor of a Brexit
DANIEL SORABJI / Getty Images

Following Britain’s vote to leave the European Union, property buyers around the world are scrambling to make sense of what the impact will be on the housing market. Experts in the field are weighing in and here is a roundup of what they have said.

James Roberts, chief economist at real estate consultancy Knight Frank: “In the coming weeks, a combination of falling sentiment and investors who are over-extended having to sell will result in some disposals which will be likely to weigh on asset prices. This we see coinciding with a devaluation of the pound. The combination of lower prices, plus exchange rate effect should then draw in overseas investors looking to acquire assets in the U.K., attracted by a G7 country with a track record of achieving strong economic growth.”

More:High-End London Brokers Face ‘One of the Busiest Days’ After Brexit Vote

Richard Donnell, insight director at residential analyst Hometrack: “Across London, where house price growth is running at 13%, we expect the rate of growth to slow rapidly on greater uncertainty and market activity in the capital is set to remain disrupted until consumers and the financial markets can see a clear strategy to manage the process to a position where the outlook for the economy, jobs and mortgage rates becomes clearer."

Charlie Ellingworth, founder of brokerage Property Vision: “It is hard to see any good side of the Brexit result in the near term except that the fall in sterling will give any overseas buyer a window of opportunity to buy cheaply. The most likely scenario is one that we have seen before in other times of dislocation -- 1987, 1998 and 2008 -- a period where the market seizes up and the only activity is between the brave and the desperate. London will be more affected by the result as many of the buying decisions are more discretionary.”

More:For Foreign Buyers, Times Are Getting Tougher

Jake Russell, director at Russell Simpson, a Kensington & Chelsea-based brokerage: “The dramatic value of the pound today, will make London property more attractive to overseas purchasers with strong currencies. We expect this will precipitate a temporary spike in foreign investment into the U.K., as investors take the opportunity to acquire property at a reduced cost. Following this initial spike, we feel that the market is not likely to improve hugely in the immediate future, as it is still somewhat depressed by, among other factor.”

Lawrence Yun, chief economist at the U.S. National Association of Realtors: “The isolationist move will cause many wealthy foreigners to consider selling their properties in U.K., especially in London as it becomes less attractive place to set up offices to conduct global business. Therefore, demand for U.S. real estate could rise if global investors view America as open to global business. But overall, global economy and job creations could modestly slow down with more frictions in place to do commerce. The British economy will be disrupted and hence we should expect fewer Brits able to buy in the U.S.”