Saturday, May 28, 2022

Wealthy London property buyers ready to jump back into the market as Brexit worries unwind

London property buyers

Wealthy buyers are increasingly ready to jump back into the market, based on hopes that Brexit uncertainties could soon subside, new Knight Frank report shows

The lucrative prime London property sector is showing signs of life after seemingly slipping into a coma in the wake of the Brexit referendum in 2016.

A new Knight Frank report published on Friday shows wealthy buyers are increasingly ready to jump back into the market, based on hopes that uncertainties surrounding Brexit could soon subside.

Knight Frank said although sales volumes have declined over the course of 2018, the number of new prospective buyers has risen in recent months and was 8% higher in November compared to January 2017. This divergence suggests pent-up demand is forming.

The report said new demand for prime central London property continues to rise in relation to new supply… which may put upwards pressure on pricing once the current political uncertainty recedes.

Prices for prime London homes and flats have dropped by an estimated 15% since 2014 as Brexit and targeted tax changes scared away buyers and convinced sellers to hold tight, according to a recent report from wealth management firm Coutts.

This trend – and a slowdown in interest from foreign investors — dragged down prices across London in 2018. The capital saw home prices drop 1.7% to an average of £474,000 ($602,000) in the 12 month period up to October, according to the latest data from the Office for National Statistics and real estate firm Savills.

Knight Frank recently released another report with data supporting this trend, showing that land value has cratered ever since the Brexit vote.

Even as expectations grow that the market could stabilise, experts aren’t forecasting a return to the heady days of double-digit price rises.

Coutts’ head of asset management, Mohammad Syed said in a recent written report the end of Brexit uncertainty – when it arrives – is likely to release some pent-up demand and see a rise in market activity and prices. But they believe that it will be some time before transaction volumes return to the levels seen in 2013.

Members of parliament are set to vote on Prime Minister Theresa May’s Brexit deal in January, though it’s widely expected that they will vote against the agreement, which could push the country towards a no-deal Brexit scenario in late March.

The government has been preparing for the possibility of a no-deal Brexit, which is forecast to be a worst-case scenario for the country, leading to a sharp slowdown in trade, along with factory closures and severe economic strains.


The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply