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World

UK property purchases plunge post-Brexit

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Opening sequence

World

UK property purchases plunge post-Brexit

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COMING UP:UK property purchases plunge post-Brexit

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Transcript

00:00:01
>> Property purchases have plunged, according to Foxtons at least. First half profit at the London focused estate agency has fallen 42%. It blames Brexit and predicts the fallen transactions to last til the end of the year. Reuters UK correspondent Costas Pitas says the UK property market is in a state of uncertainty, looking forward.
00:00:24
>> In the immediate aftermath of the referendum it was commercial rather than residential property that took the hit. Now residential has been a bit different, we've had increasing warnings from some of the estate agents, not just Foxton but others as well. And also signs from the house builders that they might think again about new projects.
00:00:42
They might slow the pace of building new homes and they might slow the pace of buying new land that would allow them to build new homes.>> Buyers in Britain may be fearful. Some overseas see opportunity, though. This site is being built into a little piece of London luxury.
00:00:59
At 7.2 million pounds per unit, it seems pretty pricey. Developers say it depends which currency you use.>> Obviously, the value of the pound has fallen quite sharply in the wake of the referendum. That means that your money goes further if your buying in a foreign currency. Now the euro has also suffered to a certain extent so it might not be so beneficial for euro buys but dollar buyers are quite key.
00:01:24
And also because Middle Eastern buyers who have snapped up a lot of prime property in London both residential and commercial are often dollar buyers. They're buying in US dollars rather than the local currency in their countries.>> Suspensions of property funds, analyst downgrades, and warnings about price falls rattled investor and buyer confidence after the vote, despite that viewings here have actually increased in the past two weeks.
00:01:49
That may be the case for this company, but economists say the full impact on the industry won't be known until Britain begins its official exit.