London’s property market remains buoyant after Brexit

London’s property market remains buoyant after Brexit

Following June’s referendum on membership of the European Union, there has been plenty of speculation about its likely impact on London’s property market.

Indeed, following Britain’s vote to Brexit, it would be easy to feel confused given the conflicting headlines we have seen about whether the price of property is going up or down.

Six months on from the vote, our experience shows that both sales and lettings in London remain as buoyant as ever. Here are a few good indicators that help support our view:

  • Low mortgage rates and good deals, especially in East London and the suburbs, are fuelling a property boom, with prices up by as much as 20%.

According to the Land Registry, the areas seeing the biggest increase in sales value are homes in Newham, Barking, Dagenham, Redbridge, Havering and Croydon where traditionally demand was lower compared to more central areas.

Borrowing by first-time buyers in London is also up 14% to £4.9 billion this September compared to the same period last year.
Read more here.

  •  Shane Croucher, a senior reporter for the International Business Times (IBT) focussing on property, politics and housing, also writes that London property prices show “remarkable fortitude” in the face of Brexit.

He bases his view on data provided by the Land Registry and the Office for National Statistics (ONS), which show property performance in London continues to outstrip the rest of the country. He noted an average increase of 10.9% on property prices across the capital, with the only slow-down on the value of luxury homes.

Croucher notes that while the increases are not as high as previous years, London prices remain on an upward trajectory because of the acute shortage of homes in London and the huge demand by domestic and foreign buyers. Read more here.

  • The fall in the value of the pound has helped attract foreign buyers to the capital, especially those buying in US dollars.
    Read more here.
  • According to a survey by the National Landlords Association, a third of landlords remain fearful about the impact of Brexit, with the figure rising to over 50% in the capital.
    Read more here.

And yet all is not doom and gloom. Demand for rented accommodation remains high in the capital. This, and a combination of other factors, from rising Stamp Duty for those who buy-to-let and increases in other landlord expenses, is likely to result in the number of properties on the London rental market dropping, which in turn will help to maintain or drive up prices. Indeed, forecasts show prices could rise as much as 19% by 2021 – rising far faster than property sales. Read more here.

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