Are you concerned about the impact of Brexit on London’s housing market? If you’ve been trying to sell a property in Central London during the last couple of years, you might have had good reason to be worried. However, most industry experts predict that the situation is about to change for the better.
What about the near future?
Although the future looks positive for the capital’s property market, we’re not quite out of the woods yet. The lead-up to Brexit looks set to bring further uncertainty, and as such, buyers might be holding out for bigger price reductions.
There are other factors that London needs to bounce back from too – such as affordability, two general elections, and Brexit-related job uncertainty.
Numbers of transactions are anticipated to reduce temporarily, while buyers and sellers alike adopt a ‘wait and see’ approach. This is to ascertain what the situation will be after Brexit occurs.
Looking towards 2020
Despite this, experts predict that the market will pick up swiftly towards the end of 2019. One mortgage lender even asserted that growth would pick up by 2-4%; which is a significant rise. Others were more moderate with their estimates, but predicted growth of between 1 and 2.5%.
Another expert commented that the UK’s property market “continues to shine through and defy the naysayers,” and that “while the year ahead will be a tough one, it’s likely that once the dust does settle on our EU exit, the damage will be far less than predicted.”
A city that never loses its appeal
Ultimately, few people were seriously concerned about the temporary fall in London house prices. The capital is unlikely to lose its appeal for UK residents and international buyers alike, and it continues to be the UK’s main business hub.
As for Central London – one expert succinctly stated: “Those buying the most expensive homes in central London are often less concerned about rental yield and total return, but driven by the appeal of owning a piece of prime real estate in what is widely seen as a great city to live.”
Thinking of buying? Here’s where to look
Given that prices are likely to start rising soon, it’s well worth scouring the London market at present, as you may be able to invest in a property at an appealing price.
We recommend focusing your search on areas like:
- Southwark. Rental yields grew by 0.7% from 2017 to 2018, and the area experienced the biggest uplift in rent over 2018 (outside the City of London). If you’re thinking of investing in a buy-to-let property, this is a solid option.
- Rotherhithe. Rotherhithe has been significantly regenerated in recent years, and property prices look set to rise accordingly. The appeal of living close to the River Thames is also a major draw, which means homes will probably remain popular for the foreseeable future.
- Prestigious areas like Chelsea and Belgravia. Prime locations like Chelsea, Belgravia, Shad Thames and Mayfair have proven to be resilient, even in the face of Brexit, and are already recovering well. Now is the time to buy if you wanted to secure a property at a competitive price.