Brexit uncertainty ‘keeping a lid’ on property market growth

Uncertainty surrounding Brexit will restrict demand for property in London over the next year, a Reuters poll has revealed.

A survey by the news agency of 30 housing market specialists including Knight Frank, found the most common reason identified for demand falling was Brexit.

Respondents thought house prices would rise on average 1.7% nationally this year, slower than the predicted 2.5% inflation estimate.

Looking at London, those surveyed felt prices would fall 1% this year, which would be the first annual decline in the capital for almost a decade.

The poll predicts house prices will rise 2% nationally in 2019 and 0.5% in London, before hitting 2% across the country in 2020.

Oliver Knight, associate at Knight Frank, told Reuters: “There is a lot of uncertainty in the market as to where we are with Brexit negotiations. That has really kept a lid on further growth. There is a wait-and-see attitude.

“We will see a slightly better performance in 2019 as the pressures between supply and demand really start coming together.”

https://uk.reuters.com/article/uk-britain-property-poll/brexit-puts-a-ceiling-on-london-housing-demand-prices-reuters-poll-idUKKCN1J20DJ

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One Comment

  1. Chris Wood

    Not my patch by a long chalk but, I suspect the London slowdown has more to do with the tightening of AML regulations and a drop off in foreign Billionaires buying off plan due to closer checks on their bona fides.

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