Despite Brexit fears, London property prices have remained strong and are forecasted to increase towards the end of the year. However, most commentators now believe that prices will dip in 2017, by as much as 5.6%, before returning to growth in 2018 and beyond.
The top end of the London market has worried investors even prior to the June vote, and could be susceptible to changes. However, housing and office space in London is still in high demand despite fears for the economy and a number of industries including technology and FMCG.
Long Term Strategies
Beyond 2021, developments within the housing market will depend on the immigration and economic policies that the UK negotiates upon leaving the EU. However, the housing price dip in 2017 and forecasted increase in 2018 could create excellent opportunities for both domestic and foreign investors looking for a high yield.
The rental market will also remain strong into next year, with 1.8m more households expected to rent by 2025. Few landlords have plans to increase their portfolios, so increased demand is likely to drive prices even higher, offering excellent buy to let opportunities for investors.
While the priciest boroughs may see a larger dip in prices and slower rise after 2017, there are numerous opportunities around London’s expanding transportation network. The UK’s failure to meet building requirements for several years mean that demand would have to drastically fall across London for prices to see a significant dip. As construction companies are likely to limit their output further until the economy stabilizes, supply will ensure that prices do not fall too dramatically across the capital.
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Categorised in: News
This post was written by Innermedia Ltd