• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Property

What Effect will Brexit have on London House Prices?

The results of the EU referendum took everyone by surprise. The pollsters had predicted victory by a narrow margin for the remainers, but in the end, the ‘Vote Leave’ campaign stole the show with a 52% majority. Overnight the pound fell to its lowest point for 31-years. It still hasn’t completely recovered, although suggestions that […]

Sam Allcock by Sam Allcock
2017-03-20 12:07
in Property
FacebookTwitterLinkedinEmailWhatsapp

The results of the EU referendum took everyone by surprise. The pollsters had predicted victory by a narrow margin for the remainers, but in the end, the ‘Vote Leave’ campaign stole the show with a 52% majority. Overnight the pound fell to its lowest point for 31-years. It still hasn’t completely recovered, although suggestions that the Bank of England may be contemplating raising interest rates have given Sterling a much-needed boost.

Theresa May Set to Trigger Article 50

 

Eight months later, we are on track for Brexit and despite some hiccups along the way, the Queen has finally given Royal Assent to the government’s Brexit bill. With the final hurdle crossed, Theresa May could trigger Article 50 within a matter of days, although in reality it’s more likely to be nearer the end of March. Once the countdown begins for the UK to depart the European Union, minsters face a protracted period of negotiations with EU members, which could have an unwelcome effect on the value of Sterling. Indeed, it is very likely that the economy will weaken over the next two years, which will have repercussions for the London housing market.

London Property Bubble

Most things happen in London first, so analysts look at price growth (or decline) in London and use this as a barometer for the rest of the UK’s housing market. House prices have soared in recent years, but nowhere more so than in London. The capital has become a magnet for overseas investors and property developers, leaving ordinary Londoners priced out of the housing market. In recent years, London has experienced a property boom, causing many to describe it as “overheated”.

Figures from Savills show that the cost of an average home in London has shot up by 37% in the last three years, compared to 16% outside of London. This has led to a 25% increase of people aged 30-39 moving out of London and into the suburbs. Savills predicts that house prices in the areas surrounding London will rise by 17-19% in the next three years. In central London, it’s a different story.

Property Market in London “Vulnerable”

Experts believe the UK property market will remain largely unaffected by Brexit negotiations, but the prime central London property market is more vulnerable to any negative repercussions from difficult Brexit negotiations. Central London is heavily dependent in a thriving financial sector. Many of the world’s largest banks have bases in Canary Wharf, so a bad Brexit deal for the UK, could see some of them moving overseas. There is already a lack of affordability in London, with very few people able to afford to buy, so if a significant number of bankers and other highly paid professionals leave, prices could fall due to a lack of demand.

However, it’s not all bad news, particularly for developers of high-end London properties. If sterling continues to remain weak against the dollar, this could boost overseas investment in the prime London property market.

Brexit will almost certainly have an effect on the London property market, but with interest rates so low and affordable properties in short supply, we can expect to see some price growth over the next two years.

RelatedPosts

Vision 2030 in Action: NHC Leads Saudi Arabia’s Real Estate Transformation

The rise of London’s ‘little coin neighbourhoods’: Ten hidden gems for savvy buyers

Advantages of Submersible Water Pumps and Resilient Sump Pumps

NatWest launches Family-Backed Mortgage to help kids flee the nest 

Tags: Property

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← Sometimes it is better to get a B than an A grade ← How to Handle Instagram Marketing Like A Pro
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->