House prices in London are astronomical. The upcoming Brexit could change that. Experts believe that house prices will fall, especially in central London.
DAccording to a survey, the approaching Brexit is affecting the long booming real estate market in London. House prices are likely to fall this year and next, and could even collapse if the UK leaves the EU without a follow-up agreement, according to the Reuters quarterly survey published on Wednesday. The around 30 industry experts surveyed expect a decline of 1.6 percent in 2018 and 0.1 percent in 2019. “Central London is going downhill because the traditional overseas buyers are staying away and the number of buyers is decreasing,” said Tony Williams of real estate consultancy Building Value. “A disorderly Brexit will exacerbate this trend.”
Ray Boulger from mortgage broker John Charcol warned: “In the short term, the additional uncertainty will have a disproportionate effect on London, so that the value of some properties, especially high-quality properties, will continue to decline.” around 30 percent. Nevertheless, experts continue to consider house prices in the British capital to be overpriced.
Great Britain wants to leave the EU at the end of March 2019. Negotiations on this are progressing slowly, however. This is fueling concerns that a disorderly Brexit could result, with serious consequences for the economy. Investors are therefore hesitant to invest on the island.