The UK property market is enjoying a “Boris bounce” with an increase in house sales since the December general election.
Leading estate agent Savills says its profits are expected to be up thanks to an unexpected rise in activity at the end of a relatively flat 2019.
Meanwhile, it pointed to how its own house sales were outperforming the overall property market, “in particular taking share in the core London market”.
High-end deals struck
Savills’ confidence is reflected in the number of high-end property deals struck in London since the Conservatives won a decisive majority in the general election.
The Guardian reported that a Chinese property tycoon has bought the UK’s most expensive-ever home, inking a deal worth £210 million for a 45-room mansion in Knightsbridge.
Reflecting recent confidence in the property market, another home in central London sold for £65 million. A third sold for £50 million in Chelsea.
Confidence returns to property market
In a statement to the stock market, Savills said: “Thanks largely to an excellent performance in the UK… the Group anticipates the underlying results for the year to 31 December 2019 will 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.
“The clear outcome of the general election promoted a strong close to the year as confidence to transact returned to the market.
“Despite the backdrop of uncertainty, the UK performed well across all business lines. Our residential business continued to outperform the overall market conditions, in particular taking share in the core London market.”
Increased political stability
The statement helped Savills shares rise by 7 percent. However, Savills did sound a note of caution for coming months.
Savills said: “Looking to the year ahead, increased political stability in the UK should therefore maintain improved sentiment in real estate markets.
“Nevertheless, some caution may remain until the full impact of Brexit is better understood.”
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