UK’s Largest Group of Property Buyers Report Brisk Business in the Days Before The Referendum
Research conducted by The National Association of Property Buyers (The NAPB) reveal a mixed picture ahead of the vote on Thursday which many have forecast will bring about a crash in the UK property market.
Members of the organisation use cash reserves to purchase property quickly, to relieve chain breaks and financial difficulty, and are often able to complete a purchase in just days compared to the current average of 2 to 3 months. This is at a cost to the seller, they generally pay just 80% of the market value.
Jonathan Rolande, Director of the organisation explains “We carried out a confidential survey of our members. Property buyers have been hit with a lot of changes lately, additional Stamp Duty and the imminent referendum to name just two. Our members purchase over £1 Billion of property a year so we were interested to hear what they think about the future”.
75% reported a decrease in purchases year on year compared with 2015 but it seems that may not last for long with over 75% also reporting an increase in enquiries in the run up to the crucial Brexit vote. This increase shows that more sellers are resorting to quick buying firms, unable to sell on the traditional market.
“Following the budget, the Buy to Let market has pretty much collapsed, new loans are down by 85%. With this many people out of the market, our members are stepping in to help fill the void” continues Jonathan.
Not suprising then that most firms feel optimistic about the coming year in terms of their businesses. For a time at least, the quieter the house market, the busier they will be.