Since the referendum back in June, the property market has been somewhat unpredictable, with conflicting opinions coming from every angle, but several months later it appears we might finally be seeing the consequences of Brexit.
House prices rising and fallingA study carried out by Haart Estate Agency showed that the average value of houses in central London has been steadily falling, whereas on the outskirts of the city, the opposite has been seen, with house prices rising substantially.
Paul Smith from Haart Estate Agency, refers to this as the “reverse ripple effect” which contrasts to the country’s previous “London first” mentality when buying property. Brexit seems to have diverted the attention away from owning property in the capital, letting the outer boroughs get their chance for a rise in popularity.
Who might benefit from Brexit?For the outer London homeowners wanting to sell their properties, this could be good news, especially after the cautious political influence Brexit had on the property market. This “reverse ripple effect” might mean that these sellers can get a little more for their properties.
And buyers could benefit from this outcome too. With many years of inflation keeping many first-time buyers off the property ladder, a decrease in property prices could be the much-needed window of opportunity they need to purchase their first home in the city.
So, what next?With the housing market more unpredictable than ever before, we’ll be taking note as to what happens next in London and its outer boroughs. While this may well be a temporary situation, we have our fingers crossed that this is a long-term change, and that buyers will be able to find more affordable housing in the capital, and those selling in the outer limits will receive higher profits, but only time will tell.
Why not give us a call to discuss your sale or purchase, our expert team is waiting to hear from you on 0800 038 6446, or use our instant quote generator to see how much we could save on your conveyancing.