You are here: Home - News -

London house prices to fall this year and next; 1-in-3 chance of a crash – Reuters poll

by:
  • 29/08/2018
  • 0
London house prices to fall this year and next; 1-in-3 chance of a crash – Reuters poll
Property prices in London will fall this year and next and will fall sharply if Britain fails to reach a deal ahead of its scheduled departure from the European Union in March 2019.

The quarterly poll from Reuters revealed around 30 housing market specialists believe house prices in the capital – where foreign investors have previously fuelled skyrocketing prices – will fall 1.6% this year and 0.1% next.

Commentators suggested Central London was suffering because traditional international buyers were staying away while domestic buyer numbers also continue to fall.

Uncertainty over how Brexit negations will pan out has already spooked foreign investors, the survey taken in the past week found. When asked what effect a disorderly departure would have on London prices, responses ranged from “short-term fall” to “damaging” to “disaster”.

Ray Boulger at mortgage broker John Charcol said the “additional uncertainty” will disproportionately affect London in the short term, pushing high value properties in particular to fall further.

Sterling fell to a near one-year low against the Euro on Tuesday but where a weaker currency should make UK houses more attractive to foreign buyers, Brexit uncertainty is keeping them away.

On the likelihood of a “significant correction” before the end of 2019, almost one in three of those polled suggested it was probable.

The findings also echo predictions from Savills that London prices will fall by 2% this year and data from London Central Protfolio released yesterday showing London transactions down on last year.

 

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Countrywide share price drops 10% as £140m rescue bid approved

Estate agent Countrywide has had an emergency £140m rescue plan to shore up its £211m debt burden approved by shareholders.

Close