Brexit uncertainty expected to hit London property market hardest

 

With the date for Brexit now less than a year away, property industry experts are predicting a difficult time ahead for the London housing market as it could be set to see its first annual fall since the financial crisis.

Between a group of 30 specialists polled this week by Reuters, it was decided that London house prices were set to deflate by an average 1% over the course of 2018 – but views were mixed with one respondent predicting a massive 6% drop.

Compared to the national average house price performance, which is expected to see a modest rise of 1.7% this year – subject to significant regional variations – London is still seen to be lagging behind by property market insiders, and much of this has been put down to Brexit.

The latest figures from the Office for National Statistics (ONS) show that house prices in London dropped by 0.7% year-on-year to March 2018 to £471,944, which was the biggest fall seen since September 2009 in the aftermath of the credit crunch.

More clarity is needed

Since the EU referendum, the pound is down against the dollar by 10%, which could be great news for foreign investors, but some are opting to stay clear of the capital until the market regains some of its momentum. Next year, the poll revealed that some recovery can be expected, with house prices nationally forecast to grow by an average of 2%, but London is still expected to trail behind with a small 0.5% price increase.
[crb_image link=”https://www.buyassociation.co.uk/advice/property-investment-starter-course/” image=”https://cdn2.hubspot.net/hubfs/1717782/Asset_Store/WebCTA/cta.jpg” align=”left”]
Oliver Knight, associate at estate agency Knight Frank, said: “There is a lot of uncertainty in the market as to where we are with Brexit negotiations. That has really kept a lid on further growth.”

The poll revealed that most people thought there was not enough clarity around the post-Brexit outcome at the moment, which was leading people to adopt a “wait and see” approach to property investing, while other factors such as tax changes for landlords were also affecting prices.

Peter Dixon, an economist at Commerzbank, said: “There is evidence to suggest that the phasing out of mortgage tax relief for buy-to-let owners has hammered the market. This will let some much needed air out of the market, particularly in London and the south-east.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

brexit

Brexit uncertainty expected to hit London property market hardest

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.