How will Brexit affect the London Property Market?

imgres-4So where does London property find itself after the Brexit result?

The London property market is likely to be affected by a level of uncertainty as the Brexit negotiations commence and continue.  But those people who want and need to move, should.  Uncertainty is an opportunity for property buyers and property investors.

 

What about demand for London property?

Our London office has already been experiencing a significant increase in interest from buyers looking to get into the London property market.  Domestic clients are looking to use the opportunity to negotiate, and to make the move that many have been postponing for the last six months. Foreign investors are attracted by the falling pound, with some parts of London now 25% cheaper after the drop in the value of sterling and a weak prime central London market. There is a real opportunity for those in a proceedable position.

 

images-1What is going to happen to property prices in London after the Brexit result?

Before the EU Referendum, it was agreed by many in the market that price growth was slowing.  We, at Stacks, believe that house prices in London were overvalued from 3-12%, depending mainly on the level of growth that different neighbourhoods had enjoyed in recent years.

However, it is also clear from the Stock Market assault on housebuilders’ share prices that house building is likely to take a major knock, with an ongoing impact on supply.

 

What is going to happen to property prices in London after the Brexit result?

Our London office has already been experiencing a significant increase of interest from buyers looking to get into the London market and therefore wanting some expert and impartial advice from buying agents. Foreign investors are attracted by the falling pound, which has made London house prices considerably less expensive for overseas investors and buyers. 

 

2Should I go ahead with property I have agreed to buy?

Yes.  If you like the property that you have agreed to buy and you feel that it is the right one for you, then the Brexit result should have made no difference to your desire for the property.  You should be asking yourself, do I want to make that move, or am I happy to remain stuck in my existing property.

 

I want to move what should I do?

Get on with it.  You need to act now by starting to look at properties.  If you have a house to sell, you should be ringing your local estate agents and getting them come round to give you a market appraisal/valuation of your property.  You should also be speaking to family members, your accountant/financial advisor/mortgage broker and your solicitor as a matter of good practice.

 

1Has my property gone up or down in value since the Brexit vote?

That depends on your property and depends on how it is valued.  Over-valued property in the ongoing market is unlikely to sell, let alone receive any footfall from prospective buyers.  It is very important that you take the considered view of your estate agent.  As buying agents, we will be making very sure that our buying clients do not over pay in this market.

 

Should I wait to buy?

No – the chances are that you are moving for a reason.  Your family is growing and you need a bigger property, your property is too big and you want to downsize, you want to make an investment etc., etc., etc.  Has that changed since the Referendum Brexit result?  It shouldn’t have.  You can sit on your hands and do nothing, or you can take advantage of this window of opportunity, but ensure you take imperial and expert advice from a reputable buying agent. 

 

For more information on local neighbourhood market conditions, please call or email:

london@stacks.co.uk

020 7458 4155

www.stackslondonpropertysearch.co.uk

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