EU Ref uncertainty delivers £26k London property discount for Eurozone buyers

EU referendum uncertainty is causing Eurozone buyers to take advantage of £26k discounts on London properties, according to new research.

A study by London-based estate agents Stirling Ackroyd found that house prices across the capital have dipped by €33.2k (c.£26k) ahead of the In-Out vote this Thursday (June 23).

According to Stirling Ackroyd, depreciation in the Pound this month has pushed the average price of a London home down to €596k, compared the record high of €630k in November last year.

The five-figure saving for EU-based buyers is equivalent to a 5.3% discount.

Stirling Ackroyd MD Andrew Bridges said: “European buyers are snapping up bargains across London.

“A declining exchange rate has meant London is becoming a more affordable global property hotspot – particularly for those paying in Euros.”

He continued: “If Britain votes to leave the EU, Sterling is set to fall further so, ironically, London would become even more affordable – and therefore more attractive – to overseas buyers paying in Euros.

“While Eurozone buyers are propping up the temporarily soft market as prices stutter, Brexit might make Europeans much more significant players in London’s property scene.”

Speaking further, Andrew said he believes “the bright lights of London will be undimmed” in the wake of the referendum, due to the city’s “second to none” resilience.

He added: “House prices may be cooling slightly in the face of geopolitical uncertainty – but this is offering bullish buyers opportunities.

“The luxury areas of London’s property market are feeling the acutest drops in house prices but these areas typically have a higher proportion of European buyers – meaning exchange rate discounts on property purchases are compensating for any further slowdown.”