What effect will Cameron’s Euro decision have on UK housing market?

What will Britain’s decision to stay out of the EU pact mean to the booming (until now) London house market?

Just how booming it has been – driven by investors seeking to put their money in a safe place as the Euro crisis has steadily deepened – is amply illustrated by figures from London agent Marsh & Parsons.

Last month, the number of properties ‘under offer’ with Marsh & Parsons rose to 177 – a 21% increase compared to November last year.

As a result, the overall total value of properties under offer also rose, by 19%, compared to the previous November.
 
The number of properties under offer in November also rose on the previous month, by 9%.

Other London agents have also been seeing frenetic activity that goes well beyond a normal boom.

At WA Ellis, partner Lucy Morton said: “Our sales team are noticing a last-minute dash to conclude sales before Christmas. They have agreed several substantial sales in the last week and have noticed an increased level of inquiries from overseas buyers who are coming to London over the Christmas period to source properties.

“The international interest in London property continues to boom and we anticipate that this will continue to grow in 2012.”

However, Morton was making her comments before Friday’s news that Prime Minister David Cameron had refused to sign the Euro treaty, and Marsh & Parsons also put out its statement about the number of properties under offer before then.

History shows that the property market can turn on a sixpence – or in this case, a euro.

No one quite knows what to make of it, although we have seen one (just the one) commentary, again written before last Friday, which suggested that if Europe turned to dust, the London housing market would simply carry on booming.

Yet it is possible that we will see fall-throughs from international buyers who don’t like our attitude.

Will what happened in Brussels last Friday impact on the London property market? Could it have a wider impact on the UK property market generally?

Any thoughts and comments would be welcome.

Source: estateagenttoday.co.uk