How has Brexit affected the London's property market?
The latest figures show house prices were up 5.7 per cent, or £11,500, in the third quarter compared to the same period last year. That's down from annual growth of 6.8 per cent in the second quarter.
But few months on from the Brexit vote, agents report strange happenings on every rung of the market. The plunging pound has put London's property internationally centre-stage: over Hong Kong dim sum and cocktail parties in New York, the talk is all about whether now is the time to buy up the capital's property — with foreign interest up by 50 per cent according to prime agents.
Right now is a great time to buy for many international buyers. The fall in sterling means that dollar buyers earlier this week effectively enjoyed an 11 per cent discount compared with the day of the referendum vote. It is also a great time for some domestic buyers thanks to almost non-existent interest rates.
Brexit could, however, spell trouble for European bankers who have made their home in London. If the UK does leave the single market, many may find themselves posted abroad. Jefferies, the US investment bank, estimated before the referendum that an exit could see 100,000 banking jobs relocated to Europe. All but 500 of Goldman Sachs' 6,500-strong European workforce are based in London.
The Central London property market would be hit hardest, but the impact would not be confined to the capital. Conversely, if a UK suddenly freed from EU regulations attracted more inward investment, not less, the property market would benefit.
With the value of the pound hitting a 30-year low in the wake of the Leave vote, it means overseas buyers will get more for their money.
United Capital Group Ltd is an exclusive International Real Estate Investment consultancy based in London, specializing in property acquisitions and advisory services for International clients and property investors in search of prime real estate.www.UnitedCapitalGroup.eu