A month has passed since the UK made the the decision to leave the EU.  The property market was predicted to go into free fall.  But what has really happened, on the ground in Cambridge?

Immediately after the Brexit result, Stephen Mitcham, chief executive of The Cambridge building society took the view that the market would rebound quickly from any slump, adding that prices are primarily a function of supply and demand.  It is certainly true that  many local areas don’t have enough homes, so prices are likely to remain supported until that imbalance changes.

My experience as a property finder provides an interesting take on where the market sits today. One of my investment clients immediately pulled out of a deal after the Brexit result. His view was that the market would come off 25-30% and he would not proceed with the purchase unless there was a substantial price reduction.

Another of my client’s lost the buyer at the bottom of her chain (unrelated to Brexit) but the property was remarketed and the chain was back together within 3 days.

Finally, I have a client in a bidding war for a townhouse in a prime location.  The price is already 10% above the original guide!

My take is that the prime Cambridge market is still very active.  The main driver is the lack of supply and that is keeping prices high.  At lower levels we are seeing some price reductions but good Cambridge houses are as rare as hen’s teeth and buyers realise that if they want one, they need to act quickly.

 

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