When the UK voted to leave the European Union in June last year, many were uncertain precisely what impact the vote would have on the property market. Now, more than a year later, answers are beginning to emerge, with estate agent Savills announcing a price drop across London’s prime housing of 1.2 per cent in the third quarter of 2017, reaching a current slump of eight per cent below its 2014 peak. This, coupled with a fall in the value of the pound, has rendered the London property market somewhat unappealing to domestic buyers.
However, the forecast is much brighter for prospective overseas investors, who face the double incentive of properties at a reduced price, paired with an exchange rate stacked in their favour. While the current landscape may be uncertain, London property yields high returns over the long term, with the average house price tripling in real terms since 1990. With the UK set to remain a front-runner for ultra-high-net-worth individuals (with a forecast population of UHNWI of 12,310 by 2026), as well as a centre of business and technological innovation, Savills anticipates prices will recover towards the end of 2019, with a bounce back of eight per cent by 2020.
With this in mind, now is the time to strike.