Opportunistic buyers have been using the results of the EU Referendum and the resulting political & economic uncertainty as a tool to renegotiate price on ongoing transactions. At this time, it’s important for vendors to remember that, from a finance perspective, there have been no changes whatsoever in the marketplace; lenders aren’t looking to re-value properties, mortgage criteria has not altered, rates are identical, banks are just as keen to lend money (if not more so!) & mortgage offers are not being withdrawn. Fundamentally, the London property market is sound; unemployment is low, inflation is low, interest rates are low and the laws of supply & demand still apply.
Whilst some buyers have been successful with their renegotiations – typically where the vendor has a time-sensitive onwards purchase – this phenomenon seems to be driven by opportunism rather than genuine sentiment. However, regardless of buyers true motives it doesn’t change the fact vendors seem to be getting caught in a game of high-stakes poker: Do you want to risk losing your buyer over a modest renegotiation on price?
As time goes by the general public are beginning to remember what really matters: you are still doing the same job you were 5 weeks ago & earning the same salary; the U.K. is a safe country from a political, legal & economic perspective and most importantly the dream of home ownership is still alive and kicking!
And fortunately, for vendors unwilling to play ball finance options exist to put the ball back in your court: Let-to-Buy & Let-to-Rent. If you have sufficient equity in your property, why not retain your current property on a Buy-to-Let Basis with a view to re-marketing once the currently political uncertainty subsides? Why take a penny less for your property than its worth, simply down to short-term factors? If needs be, hold on and sell at the right price in future instead.