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Houses Back On The Market Or Reduced Since The Eu Referendum

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On the downside I've not had a single genuinely new listing since the ref, so it appears prospective sellers may be holding back.

On the upside I've had far more reductions than normal and quite a few re-listings of previously sstc properties, so it appears those currently on the market are panicking a little bit at least.

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I have seen a lot of 'new to the market' re-listings without reductions of houses that have been sitting there for months!

who do they think they are kidding :mellow:

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BLT anecdote.

Last night, a friend of mine who knows a 17-20 property BTL landlord (outer London) said he's been as sick as a pig since Friday. He'd been trying for ages to get rid of one of his shitey flats that wasn't worth very much. There were no takers for months and months, until he found a couple who wanted to buy and things finally started progressing. They Brexit-undered him this week, he must have been in a position where he couldn't say no, and he lost £20K off the capital gains 'just like that' **click fingers**. It was £20K off what had to have been a very slim margin -- he said he got no sleep last night because of it, clearly worried about his 'wealth portfolio' of ugly flats going down the pan.

If I get any more details I'll share them.

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I live in North Yorks and my friend is looking for somewhere. The market has been rising since Oct last year. A property came on Wednesday pre Brexit £400k and sold on Saturday with 3 fighting for it.

I told him to wait.....that is utter madness for something which was only £10k under comparables.

He has offered on something at £450k (offer £410k) and they want £445k. This is his forever home but I said 2 days after Brexit is a time to wait.....his forever home may be cheaper in a few months and once people start thinking the rise has stopped the urgency to buy disappears. Then the motivated sellers start to panic. He has walked away from that one.

The problem today is things have been buoyant and sellers just believe that if they wait someone will come along. That will change quickly.

I predict falls over the next 2 years comparative to the rises we have seen over the past 5 years......just round here the message may take a few months.

Seeing the odd reduction but really for things which were trying it on. That's the first step I guess.

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From an EA website, so things must be bad / good*

*delete as appropriate

Demand for homes at three-year low - and that's before Brexit...

Uncertainty - even that which existed before the EU referendum just a week ago today - means demand for property has now fallen to its lowest level for three years according to the National Association of Estate Agents.

Estate agents recorded an average of 304 house hunters registered per member branch in May, as uncertainty in the lead up to the referendum stalled buyers.

This was down six per cent from April, and the lowest recorded since November 2013 when 292 buyers were registered per branch. Compared to May 2015 when 383 house hunters were recorded – demand has decreased by 21 per cent year on year.

In line with falling demand, last month the supply of houses available to buyers increased marginally from 35 properties available to buy per branch in April, to 37 in May.

The number of sales agreed in May decreased to an average of eight per branch, a drop from nine in April falling to the same level seen during the seasonal slowdown in January.

One bright light was that May saw sales to first time buyers increase marginally: some 27 per cent of the total sales completed last month were to FTBs, an increase of one percentage point from April.

“As a result of the vote for a Brexit, we expect international investors to look a lot harder at the UK as a potential market to buy in and this will have a knock on effect on the house building sector, as investments may be delayed or put off completely” says Mark Hayward, NAEA managing director.

“Although in the short term we believe that house prices will remain stable, we cannot be certain about the next quarter as political uncertainty and market unrest could affect the housing market.

“The supply of available housing is still extremely low compared to this time last year, which is particularly worrying. A Brexit could impact the skills required to drive property developments in the UK. This means that in the longer term, something will need to give which regrettably could mean a surge in house prices or buyers struggling to find a suitable property in order to move or get that first foot on the ladder” he adds.

Meanwhile Haart estate agency says the number of registered buyers pulling out of transactions over last weekend - shortly after the Brexit result - was 11 per cent higher than on the comparable weekend of 2015.

However, it says the number of new applicants registering between Friday and Monday was the same level seen over the same days in 2015.

https://www.estateagenttoday.co.uk/breaking-news/2016/6/demand-for-homes-at-three-year-low--and-thats-before-brexit---

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People take to Twitter to share their failed house sales

House sales have fallen through and prices have dropped mid-sale because of Brexit, posts on social media suggest.

Since Britain voted to leave the EU, Twitter users have been consistently posting the effect of the Leave vote on individuals’ house sales.

Examples are:

•Neighbour’s house sale just fell through with buyers citing Brexit economic fears

@krishgm

•Colleagues house sale fell through on Monday after investor buying demanded 10% off due to #Brexit

@JamesMunnelly

•UK friend of mine has just had her house sale fall through – buyer now too nervous about their post-Brexit financial stability

@londonjustin

•We agreed a sale on our house 3 weeks ago. Now our buyer wants us to drop the price by £46K or he will pull out. Thank you #Brexit NOT

@NiS4r Jun 27

Elsewhere, agent Benoit Properties International said “the market may not be as favourable for domestic buyers” but it was an “unmissable opportunity” to bring foreign investment into UK property.

The firm has seen a surge in interest in UK property from places such as the Middle East, Hong Kong and other countries fixed to the dollar following the devaluation of the pound since last Friday.

“UK property is now more than 10% cheaper in dollar terms than it was on Thursday night and for clients buying for the long term this presents huge opportunity,” said the firm’s Matthew Lavin.

“Over the weekend we sold six apartments in The Exchange Building in Liverpool to a group of buyers from Saudi Arabia who had seen the news about the falling pound and seized the opportunity.

“They saved around $130,000 collectively compared to what they would have spent on Thursday night.”

The Evening Standard also reported that buyers were pulling out of house sales following the Leave vote but said overseas investors were “swooping in”.

The publication quoted sales director Guy Gittins from agent Chestertons – which lost three deals in an hour on Friday – as saying: “We lost some deals but we gained new deals because of overseas investors so the net result by end of trading on Friday was about even.”

The Guardian reported on Saturday one property developer in central London had offered a “Brexit clause” to nervous buyers ahead of the referendum, which allowed them to pull out of purchases with a Leave vote but still able to keep their deposits.

David Humbles, managing director of the luxury Two Fifty One development, said: “We can confirm that a few purchasers have decided not to proceed given the uncertainty of the market.

“However, the majority are continuing with their purchase and the marketing strategy to offer the pledge at the launch was a worthwhile exercise.”

http://www.propertyindustryeye.com/people-take-to-twitter-to-share-their-failed-house-sales/

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Comment at PropertyIndustryEye

Stable prices but not a lot on the market.

Two agents local to me are making plans already, one is selling his rental properties to fund his agency and another has sold a big % of his business for a cash injection.

Hold on to your hat folks, we could be in for a rocky ride.

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Seen a couple of reductions. Mainly just froth blowing off initial insane asking prices. Everything is still way too overpriced. How much demand can their be for 3 bed semis @ 750k (Greater London) They won't let go of their double digit annual gains so easily....Barring a Lehmans type collapse, a few months of stone cold dead activity is the next best thing.

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Is there some way to gather the asking prices for all property in my search criteria? Could do manually but 140 properties makes it a bit tedious.

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I can give you a list if your area is a postcode sector (SW1A, DA11 etc)

or you can go to each property page with PB and then export the database but that's also tedious

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I haven't seen any come back on, but lots reduced, mostly about 5%. The biggest reduction I've seen was 375 to 330, originally on at 390.

I heard that a friend of a friend had agreed a sale, but post-Brexit offer was reduced by 25%, so I think that one will come back on.

Sentiment should obviously be negative, but I wonder if the recovery in the FTSE will lead people to question how likely property is to fall.

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Still seems to be business as usual in Milton Keynes and Leighton Buzzard.

Not seen anything relisted or any substantial reductions.

Properties are still going "under offer" if they are any good. The same dross that could not sell is still there.

If things are happening behind the scenes and sellers/buyers are locked in re-negotiations it has not come through to Rightmove as yet.

Hope that they do...

Edited by Flopsy

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When the base rate is cut to zero, a lot of the mortgages will likely get more expensive as it costs the banks money to hold on deposit.

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Some FTBs may put off buying... until the base rate is cut! It's all about minimising that monthly payment.

I think it goes much wider than that and not just for FTB, there is a huge amount of fear in the market about drops.

The fundamentals are that house prices are too high, people are scared of the level of debt they may be taking on, worry about their jobs and price cuts are already hitting the market as a direct result.

In London, my inbox is being comparitively flooded with reductions and new listings.

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So many people fear the fact they could drop, that alone will now cause them to drop.

And that's ignoring all the reasons they will actually drop.

They're going to drop.

Edited by honkydonkey

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