Following the Brexit vote, London’s prime residential markets will need to adapt and adjust to a number of challenges.
In the three months since the EU referendum I have split my time between looking for clues as to what the public’s decision means for the housing market and trying to convince my wife that I will still be able to get (much needed) spare parts for my ageing but attractive Alfa Romeo.
It is rapidly becoming clear that the scale of the problem with my sporty Italian hatchback is likely to mean, wherever I source parts, it will be impossible for the supplier to keep up with demand. In a strange way this has helped me put the challenges facing the prime London housing markets into perspective.
The combination of high levels of stamp duty, a substantially less benign underlying tax environment for overseas owners and general uncertainty following the Brexit vote, indicates that further price adjustments are needed to make the market more fluid in London.
Two further years of uncertainty, as the Government’s crack negotiating unit tries to extricate the UK from the EU, are also likely to limit the prospect of any serious price growth over that period.
Source : Savills