Upmarket estate agent Savills predicts that the lacklustre high-end property market in the capital will boom once Brexit is decided, with values rising 20 per cent between 2018 and 2022.
However, according to Savills’ five-year forecast, house prices in prime central London will fall 3.2 per cent this year and remain flat next year, before climbing two per cent in 2019.
Lucian Cook, Head of UK Residential Research at Savills, says: “Uncertainty fuelled by Brexit and a weakened government mandate since the June election, means sentiment is fragile.
“Where sellers are pricing for today’s market, transactions are proceeding, but the market is highly discretionary and price growth is not anticipated until there is clarity over the UK’s future relationship with Europe.”
The firm’s Yolande Barnes adds that risks to the City related to Brexit have been overplayed and that it will remain a key global financial centre and hub for technology.
“Its prime markets will therefore benefit from new domestic wealth generation as well as attracting wealthy international buyers” she adds.
In the meantime, however, the number of £1 million-plus homes that have had to drop their price this year has nearly doubled because of uncertainty over Brexit and higher stamp duty charges.
Beavis Morgan – Specialist property advisers
At Beavis Morgan, we have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations.
For further information about how we can help you with your property ambitions, contact Steve Govey or your usual Beavis Morgan Partner.
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