15 Jan 2020
Estate agency Savills said that Britain’s house market is reaping the benefits of a “Boris bounce” that has prompted a rise in UK house sales since the general election result in December.
The estate agent, which sells and manages both commercial and residential property globally, told investors and analysts that it forecasts its 2019 full-year sales and profits to be at “the upper end of the board’s expectations.”
“In the UK, the effect of Brexit and political uncertainty suppressed market activity in both commercial and residential transactional markets until mid-December,” said Savills in a stock market update which boosted shares by 7%.
“The clear outcome of the general election prompted a strong close to the year as confidence to transact returned to the market.”
Savills also said that its business of British home sales continued to “outperform the overall market conditions, in particular taking share in the core London market.”
Founded in 1855, the agency said that growth in both the UK and the U.S. was so strong that it would more than balance out sluggish sales in Hong Kong, caused by the protracted anti-government protests.
“Looking to the year ahead, increased political stability in the UK should maintain improved sentiment in real estate markets ... Nevertheless, some caution may remain until the full impact of Brexit is better understood,” Savills said in a statement.
Estate agents across the property market have cited the so-called “Boris bounce” as the cause of the surge in sales, especially among the super luxurious and expensive homes.
Earlier this month, Savills’ senior research analyst Lawrence Bowles said: “At the top end of the market in particular, we’ve seen a strong buildup of new buyer demand. Greater political certainty will unlock some of that demand, but with less than a year to agree a Brexit deal, there are still many unknowns.”
Following the Tories’ victory, a number of ultra-luxurious homes have been sold in Britain.
On Friday, news emerged that a Chinese property giant had agreed to purchase a 45-room mansion overlooking Hyde park in London for over £200 million, making it the most expensive house to be sold in the UK. A European family also purchased a central London home worth £65 million, and a client from the U.S. bought a £50 million house in Chelsea.
The number of banks offering mortgages and very low interest rates is increasing. Over 180 £5 million+ mortgages were taken out in the 12 months to end of September.