Brexit what it means for the housing market in London
Brexit and planning to move in 2017 this year could be filled with opportunity as market conditions shift in favour of buyers.
The referendum results in June cast a doubt over the UK’s property market, particularly in prime areas such as London, which had until then been experiencing record rates of price growth. But while initial forecasts may have veered on the edge of negative, new reports show that buyer confidence has returned and that consequently, the foreseeable future looks bright for the capital’s housing market.
Neighbourhoods in West London such as Notting Hill are likely to become more affordable as prices in prime markets have dropped, according to new research from Savills. The report revealed that prices had fallen by 6.9 per cent year-over-year in PCL, and had fallen by 4.9 per cent when taking into account wider London as a whole.
It is thought that nerves around the referendum results contributed to sellers accepting lower offers, but while prices may have dropped, rates of transactions recovered after an initial lull.
Buyers and sellers adjusting to new market conditions
Prime property markets in London experienced a slowdown this year, with data firm Lonres reporting that homes sold for £1 million were down 21 per cent year-on-year.
This means that buyers are able to find properties in highly sought after areas such as West London that were previously unattainable. Further research has also shown that buyers are more optimistic about the property market following an initial slump immediately after the Brexit vote. A survey conducted by the Royal Institution of Chartered Surveyors looked at the state of London’s residential market and revealed that overall, house prices in the short and long term will rise as buyer confidence returns to the market. It showed that respondents also thought the number of homes expected to exchange hands over the first quarter of 2017 will also be on the up. While Londoners looking to move within the city may already be eyeing up properties in West London, international events could also see demand peak from overseas buyers. Some economists believe that the pending inauguration of Donald Trump, combined with the fall out from the Italian referendum and uncertainty surrounding the upcoming French elections may lead foreign buyers back to London, a market that has traditionally performed well during times of volatility.
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