2012

Before the referendum, many pointed to London as the property market that would be hit hardest by leaving the EU. Its luxury market had been weakening, a victim of stamp duty hikes for both high-value properties and investors. That has been compounded by political and economic uncertainty, and the threat of City jobs being moved abroad.

Overall, price growth in London has stagnated in the past three months, according to Halifax. Any price growth has been felt largely in the outer boroughs of London and in the commuter belt, as those seeking more room for a growing family have taken advantage of huge price growth in central London, and have injected that equity into those areas within commuting distance of the capital.

The influential residential survey from the Royal Institution of Chartered Surveyors reported that its members think there will be price falls across the country in the next three months. It says that London will continue to see price falls over the next 12 months. They also say that new buyer inquiries have been at the lowest level since mid-2008.

“People tend to revert to quality and more stable locations in unstable times. In London that means west and south west along the river, the traditional preferred locations,” says Adam Challis of JLL. In post-Brexit London, the market will be driven by buyers who need to move to upsize for a growing family.

“In this market, people will take comfort from areas which have had pretty robust [price rises] in the past,” says Lucian Cook of Savills. (more…)