According to property experts, the London property market is not expected to come out of its period of decline until 2021. But the good news is that when it does, it will be back at its old spot as the top of the housing market.
Average prices in the capital have fallen as a result of the Brexit vote, but economists predict that this will all change for the better when the UK actually leaves the European Union in 2019. Changes to stamp duty have further dampened people’s interest in buying. Brixton estate agent, Eden Harper says, “Rising interests and general uncertainty about the economy have led buyers to hold on more tightly to their purse strings for now, but there’s hope for sellers in the near future.”
A report by KPMG, one of the UK’s Big Four, predicts that prices will start to pick up as soon as the deal is done and we’re out of Europe the year after next. They also predict that London will become the leading force in the UK property market again by 2021. This is because of the many unique qualities that make London less prone to price fluctuations than other parts of the country. “London is not just attractive to people wanting to set up home. The capital also offers lucrative opportunities for overseas investors who are able to invest in property here as a safe haven” says Andrew Reeves.
Although the property slump isn’t great news for sellers who are keen to move fast, London will always be a relatively safe bet for a good investment opportunity. Few places on the planet offer the same combination of history, culture and diversity, and new developments like Nine Elms continue to make the capital a luxurious option.
Even after Brexit this will continue to stay the same, particularly if the pound continues to struggle. “London is still one of the most vibrant and attractive places in the world, and that’s not going to change anytime soon, “ says Robert Holmes.
Still, other areas outside London are also becoming more attractive to buyers. Projects like Thameslink and Crossrail are boosting property prices in surrounding areas like Brentwood, Reading and Slough, while regeneration schemes are bringing further benefits. Cities in the North of England are also doing very well, with Leeds, Manchester, Sheffield and Newcastle all showing significant growth.
Whatever deal we get from Brexit, London and the rest of the UK will always be of great interest to investors from abroad and people will always need houses. Investing in property remains one of the safest and most lucrative things you can do with your money, and if you’re happy to wait a while the rewards will become even clearer.