Confidence to go ahead with property deals returned in the wake of Boris Johnson’s general election victory last month, estate agency Savills said on Monday.
The FTSE 250 property firm gave the update as it said its annual profits will be at the upper end of the £134 million to £142 million that the City had been expecting.
Savills said Brexit and political uncertainty “suppressed market activity” in both the commercial and residential sectors until mid-December. It added: “The clear outcome of the general election prompted a strong close to the year as confidence to transact returned to the market.”
Several estate agents have reported that deals worth hundreds of millions that had been put on ice have been exchanged or agreed after the scale of the Conservative win, as relieved buyers flooded back into the capital.
Savills said: “Looking to the year ahead, increased political stability in the UK should maintain improved sentiment in real estate markets.”
But it warned caution may remain until the impact of Brexit is better understood. Shares rose 53p to 1202p.
The firm's Asia Pacific arm performed slightly below expectations due to the difficulties in Hong Kong.
