Foxtons announced yesterday (27 June 2016) that they expect their results to drop below last year for the 2016 half year to June. Hunters by comparison is expecting quite the reverse as per the company’s half year trading update of 1st June when they announced results for the first half year, expecting to be significantly ahead of the equivalent period last year.
Ed Jones, CFO of Hunters Property Plc, commented, “In our view, and historically, bricks and mortar have tended to be a good investment that is more than capable of weathering storms over extended periods of time. The Brexit outcome will not solve the UK’s legacy of under-investment in national housing that underpins property performance as an asset class, it’s about supply and demand. The shock may dip prices, and even demand temporarily, but such circumstances could then equally result in enhanced potential buying opportunities.”
According to Ed we should expect some short term dips as the market reacts to the uncertainty of the Brexit referendum outcome. The uncertainty will likely last through what appears to be both major political parties engaging in leadership battles. However, Ed added “during such times, people will still need or want to move for any given personal reason or circumstance and our job is to help people put a roof over their heads. We would be well advised to keep a close watch on the uncertainty and how markets respond, but ultimately continue to do what we do best; to provide excellent service for anyone who is selling, buying, letting or renting property in the UK.”