Thousands of home sales across London have collapsed since the Brexit vote as buyers pull out of “overpriced” deals, the Evening Standard reports.
The increase in ‘failed sales’ comes amid growing evidence of a sharp fall in prices since the referendum.
According to figures from the house move services website reallymoving.com, central London prices have slumped 12 percent in the first month after the referendum – with 10 percent of this coming in the first week, when political turmoil was at its peak. Analysts at the French bank Société Générale predict that prices could fall by more than 30 percent and even halve in the most expensive parts of the city.
Chief executive of reallymoving.com, Rob Houghton, said: “That was an unheard of fall, I’ve never seen a week where we’ve seen a change that dramatic.”
Central London agents have said that up to two-thirds of the offers they were handling on the day of the referendum have been withdrawn or are being renegotiated.
Many chains of deals involving family homes across London’s residential neighbourhoods and into the suburbs have also failed as a direct result of the referendum.
Accountant Harry Speller, 36, and speech therapist Meg Newman, 37, lost a £605,000 offer on their terraced home in Forest Hill within hours of the result.
Figures from London property analysts LonRes showed that the number of properties being reduced in price jumped by 163 percent in the 12 days after the referendum.
Data from property analysts, Propcision, suggest the number of sales falling through in London has almost doubled from around 5 percent to more than 9 percent.
The number of transactions have collapsed by 44 percent as the market ground to a halt.
James Benson, head of sales at Westminster estate agency Bensons, said: “Buyers are feeling very nervous. So much dust has been thrown into the air by the referendum. Nobody knows when it’s going to settle and how it’s going to settle.”
He said around a third of deals had collapsed, a third were being renegotiated and a third pressing ahead regardless.
“The rule of thumb is that people are offering 10 percent below, but we have had offers at 50 percent below and plenty at 20 to 25 percent.
“We have seen people who really don’t want to be in the UK anymore. There are lots of French people round here who are almost taking it personally, they don’t feel welcome.”