Slump In Foreign Investment, But Local Market Remains Steady Claims Cavendish Residential

Added by Love Business East Midlands | 24 August 2016

UPDATED: 24 August 2016

Over a month after Brexit, Nottingham based Cavendish Residential has revealed a drop in the number of foreign investors buying in the city, but a steady drive in sales from those closer to home.

                                                                                           Karan Kaur, Valuations and Marketing Manager at Cavendish Residential

According to a report from the British Bankers Association, a total of 48,973 homes were bought in June, the highest number since October, but that is still down 10% on the 54,454 sold in June 2015.

With many reports echoing an upturn in London, since Britons voted to leave The European Union on June 23, evidence and statistics from sources such as Rightmove and the British Bankers Association support these findings.

Dominic Rice, Sales and Investments Director at Nottingham-based property agency, Cavendish Residential, said:

“So far, we have very much been business as usual with regards to UK investors. People are still listing properties and asking us for valuations and viewings. We are also finding that offers and completions are arriving at a usual rate. We’ve lost no sales as a result of Brexit.

"Essentially, I believe the upturn in London will most likely be driven by foreign buyers hedging the drop in Sterling by investing in London property, as it is now cheaper than it was before.

“Foreign buyers will be investing now, expecting that the market will grow over time and that eventually the Sterling will recover and therefore profits can be made. This could account for why we have seen a slump in foreign investors buying in Nottingham, and looking to the capital for significant returns."

Statistics from Rightmove support the view of 'business as usual', with most agents having reported market momentum continuing due to a variety of reasons, including the affordability and availability of current low mortgage rates.

In terms of house prices for UK properties, these have fallen on average by 0.9% (-£2,647) so far this month to £307,824, according to The Rightmove Price Index.

This fall in house prices in the UK is a positive result for first time buyers, who will now find it easier to make their first property purchase.

Karan Kaur, Valuations and Marketing Manager at Cavendish Residential, said:

"With fears that Brexit would stunt the growth of the property market in Nottingham, the cut of interest rates couldn’t have come at a better time for people wanting to invest in the East Midlands area. 

"Although it could be deemed as a ‘smart move’ from the Bank of England to dispel said worries and doubts, the drop ought to only encourage more people to spend rather than save. Investment means growth and subsequently a restoration of faith in our local economy."

Dominic added:

"So far the market looks steady in Nottingham and there is no cause for concern in the aftermath of Brexit. 

"We are still receiving many new instructions from clients, but it would be great to attract more foreign investors back to the local market here in Nottingham."

For more information, please visit the Cavendish Residential website at www.cavendish.global

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