Bombers Fail to Shake London’s Housing Market

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The day after the attacks, some central London Realty offices and those close to where the bombs exploded were reporting near-normal trading
By Jane Padgham

Evening Standard, London

RISMEDIA, July 28 ? (KRT) ? London’s housing market has remained resilient in the face of the recent terrorist attacks, but estate agents are braced for a downturn in buy-to-let activity and sales to foreign investors.

In common with other businesses in the capital, the property market returned to near-normal within hours of the July 7 blasts.

There were some disruptions, though. For many in the throes of completing a purchase there was an exasperating delay of up to 12 days as all surveys within the M25 were cancelled, leading to a hold-up in mortgage processing. But there were no reports of buyers pulling out of deals, cancelled viewings or a fall in registrations because of the attacks.

Simon Agace, chairman of Winkworth, said: “The day after the attacks, some of our central London offices and those close to where the bombs exploded were reporting near-normal trading. The short-term lettings market may suffer adversely, in line with a small dent in London tourism, but this won’t last.”

Paul Smith, chief executive of the Spicerhaart estate agency group which has about 100 branches in and around London, said: “We have not seen any evidence of people pulling out of sales, even following the subsequent failed attacks. But if there are any more attacks, it may have an impact, particularly for people selling properties near Tube stations or on bus routes.”

New York’s experience is encouraging. 9/11 was followed by a short period of uncertainty when Manhattan’s property market all-but ground to a halt. But this was followed by a roaring real estate market as buyers took advantage of the lowest mortgage rates for 40 years.

Liam Bailey of Knight Frank, said the top end of London’s property market was most vulnerable. “The million-pound-plus market has been buoyed by foreign purchasers and is undoubtedly at risk. But if potential buyers ask themselves whether London is still a safe place in which to invest and hold property, the answer is ‘yes.”"

Copyright ? 2005, Evening Standard, London

Distributed by Knight Ridder/Tribune Business News.

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