As Brexit approaches yet the expected result remains unclear, we discuss how London’s property market will be affected.
Industry experts predict that London’s market will experience a fairly dull first quarter to 2019 in the run-up to March 29th. This is based on speculation that many prospective sellers will hold off until the commotion of Brexit subsides – in the hope of achieving a higher asking price afterwards. Buyers are similarly in a hesitant state, with the majority seeming likely to hold off committing to purchasing for now, in expectation of further price drops and the opportunity for subsequent deals.
There’s no real surprise here. However, just because everyone else is holding off, that doesn’t mean it’s the only option. There are certain areas – Prime Central London and Fulham – where prices came down fastest and hardest. It’s always been that way in London. These areas are showing 20-25% price reductions from the peak, while neighbouring areas have seen less than half of that, but will doubtless follow suit in time.
Fulham has the third most reduced properties on the market in the whole of London. So, coupled with the lower valued pound, it’s unlikely it will get much cheaper and indeed could well go up after the Brexit vote. (Join Invisible Homes and find off-market Fulham properties for sale that can’t be found anywhere else!)
While speculation around prices is fairly negative, the general expectation is however that property transactions will increase after Brexit, and that it is the first quarter of 2019 that will be the bleakest. So if the right property can be found now, competition for it is as low as it could be, which is the best circumstance to make a wise purchase.
Once the result is decided and a path forward is determined, the expectation is that economic and political stability will largely be more strengthened than before which should, in turn, increase consumer confidence.
Regardless of the Brexit result and what its influence on London’s property market will be, we can take confidence in the fact that London will always be an extremely popular location to buy, due to its high level of appeal among both native buyers and foreign investors.