It’s no great leap to suggest that the ongoing uncertainty surrounding Britain’s exit from the European Union has had an effect on the health of Britain’s property market, especially in the nation’s capital. Sales have been uneven for large parts of the last several years, but with bottled-up demand increasing, London’s market could be in a far better place after Brexit takes place in March of 2019.
Of course, Brexit hasn’t been the only cause of a lack of buyer confidence during this period; the slow growth of wages nationally and the strained nature of family budgets have also played their parts, but it’s impossible to suggest that the market hasn’t been deeply affected by the ongoing drama in Westminster surrounding the outcome of 2016’s landmark vote. Experts now say that once the United Kingdom cedes from Europe, and the country’s situation becomes more stable in the aftermath, buyer confidence should return to take advantage of the current stock. This should subsequently provoke further sellers and landlords to enter the market, which in turn will lead to a rise in asking prices.
“Any degree of political or economic uncertainty means that buyers tend to sit on their hands,” offered Aston Mead’s Land and Planning director, Richard Watkins. “People with important and costly decisions to make tend to pause and reflect, waiting for a time when the outcome is more predictable. The ongoing machinations of the Brexit process for the last two years are no exception – so little wonder that the property market has become increasingly subdued as time has gone on.
“But it’s also true to say that this situation has led to an undeniable pent-up demand – especially in London and the South East – which is likely to make itself evident, once Britain leaves the European Union on the 29th of March next year.”
To further strengthen this, market forecaster JLL has predicted that asking prices for new-build homes should increase by an average of 17.6 in Zones 1 and 2 over the next five years. Elsewhere, a 15.3% rise predicted in Central London’s luxury end with the wider Greater London area expected to see a 14.3% rise in the same timeframe.
The positive outlook comes as a result of optimistic economic indicators, which suggest a 1.5% growth in GDP in 2019, with a 2% increase predicted the following year.
March 29th may seem some way off, but with these current forecasts and predictions, it seems as if London’s property market is well primed to enjoy a far healthier 2019 once Brexit finally happens.
