Estate agent says buyers are regaining confidence but full effect of Brexit is still unknown

This article is more than 8 months old

This article is more than 8 months old

The estate agent Savills has said it is benefiting from a “Boris bounce” that has driven an increase in UK house sales since the December general election.

The company, which sells and manages commercial and residential property around the world, told investors and analysts that it expects its 2019 full-year sales and profits 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,” Savills said in a stock market update that sent shares 7% higher. “The clear outcome of the general election prompted a strong close to the year as confidence to transact returned to the market.”

Savills said its British home sales business was continuing to “outperform the overall market conditions, in particular taking share in the core London market”. The agency, which was founded in 1855, said growth in the US and UK was so strong that it would more than offset depressed sales in Hong Kong caused by ongoing 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 market have credited a so-called “Boris bounce” for an uplift in sales, particularly among super luxurious and expensive homes.

Lawrence Bowles, a senior research analyst at Savills, earlier this month 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.”

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A string of ultra-luxury home sales have been signed following the Conservative victory.

It emerged on Friday that a Chinese property tycoon has agreed to buy a 45-room mansion overlooking Hyde Park in London for more than £200m, which would make it the most expensive house to be sold in the UK. A European family bought a house in central London for £65m, and a US client bought a £50m home in Chelsea.

Banks are increasingly offering the super-rich huge mortgages at extremely low interest rates. More than 180 £5m-plus mortgages were taken out in the year to the end of September.