The moribund central London property market is finally emerging from a three-year “Brexit coma” as impatient buyers decide they have put their decisions on hold long enough, according to two reports this week.
Estate agent Chestertons says its analysis shows the epidemic of price reductions is easing as confidence returns to the capital, despite the continuing political uncertainty during the Tory leadership contest.
Its data found that there were 35 per cent fewer price cuts in the first five months of the year compared with the same period in 2018.
At the same time the number of home buyer registrations across the capital as a whole rose 18 per cent.
The biggest rise in demand has come in prime central London areas such as Chelsea, Westminster, Mayfair and Knightsbridge, where there has been a 32 per cent increase in the number of buyers registering.
Chestertons’ managing director Guy Gittins said: “With confidence comes an acceleration in activity — and that’s what we’re seeing as buyers shrug off the current political uncertainty and the London housing market starts moving again. This has been the most encouraging start to the year we’ve witnessed since the EU referendum result, and the change in buyer appetite is palpable.
“The direction of travel is clear. The recent upswing in buyer demand means it’s much more likely that a property will sell for its asking price compared to a year ago, as competition for available homes ramps up. And this is only the start. We know there’s a huge amount of pent-up demand in the market, and once there is greater clarity over Brexit, more buyers are going to be getting off the fence and flooding into the marketplace.”
Separate analysis from property investment fund London Central Portfolio (LCP) has also uncovered a “notable change of sentiment” over recent months.
It has recorded a 37.9 per cent jump in transactions during the last quarter — the biggest rise in more than two years — and suggests that investors are shrugging off “Brexit fatigue.”
Prices are also up, surging 13 per cent on a quarterly basis and 8.2 per cent year on year, according to the LCP data.
LCP chief executive Naomi Heaton said: “The ‘wait and see’ attitude, endemic since the EU referendum in 2016, appeared to start turning ahead of the Brexit deadline of March 29, with investors wanting to capitalise on weak sterling and discounted prices.
“While the extension of the deadline appeared to have initially dampened investors’ enthusiasm, there has been a notable change in market sentiment and several estate agents are reporting improved trading conditions. It would appear investors are no longer prepared to sit on the sidelines while the UK makes up its mind.”
https://www.homesandproperty.co.uk/property-news/london-house-prices-property-market-in-the-centre-of-the-capital-emerging-from-brexit-coma-a131546.html
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