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How Brexit has affected London’s property market

Created: 06/07/2016

The end of June 2016 was a historic time in British history and saw British citizens make the decisive vote to leave the E.U. Amongst many other areas that will change the lives of many, London’s property market will become a hive of interest for investors both in the UK and abroad. But what will this mean for future property owners and those already living in the capital?

Nearing the day of the Brexit result, Foxtons Estate Agents, who focus on London’s property market, told This Is Money: “The run up to the EU referendum led to significant uncertainty across London residential markets and the decision the leave Europe is expected to prolong that uncertainty.

“While it is too early to accurately predict how the London property sales market will respond, the upturn we were expecting during the second half of the year is now unlikely to materialise.”

Figures from the Bank of England showed that more property owners were securing mortgages for house purchases leading up to Brexit. Where 66,205 applied in April for mortgage approval, in May there were 67,402 people in the same position.

Although there is still a long wait ahead for estate agents and investors interested in London’s property market, there won’t be a definitive answer to how Brexit will affect the industry, as Nationwide’s chief economist, Robert Gardener, explains: “Ultimately conditions in the housing market will be determined by conditions in the wider economy, especially the labour market. It is too early to assess the impact of the referendum vote on the economy.”

Estate agents have highlighted that prospective buyers and sellers will certainly be hesitant to take any action until the economy sees real trends following Britain’s decision to leave. However, this will give property owners the time to source handyman services in London to complete their home renovation plans. 

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