- DATE : October 19, 2017
Despite the increased activity being witnessed across central London, the market remains subdued. Foreign buyers mainly from Asia are the most active, driven mainly by the weak pound coupled with their unwavering demand for London real estate. The picture is somewhat different outside central London. Although price increases have slowed down considerably, demand is still strong particularly for starter homes and low to mid range properties.
Most buyers are long term investors, with short term uncertainty seen as an opportunity. The weak pound is more than compensating for the increase in stamp duty and sellers are being more realistic. As a result, transaction volumes are on the up compared to last year.
As Brexit negotiation start and stop and start again, we expect the landscape to remain unchanged. The uncertainty that was brought about in June of last year is being recognised as a longer term state of affairs and the market is pricing it in.
Savills recently reported forecasts for central London which show a 21% price growth over the next 5 years. The brave investors are getting on with business and they will be the ones to be rewarded in the long term.