- SE District
London’s housing price has been dramatically outpacing inflation for the last few years. Industry analysts and economists surveyed by Reuters have predicted house prices in the capital will fall 1.7% this year and a further 0.3% in 2019, regardless of securing a Brexit deal (The Week UK, 2018).
London is known as a popular destination for foreign investors to invest and because of this, London’s property value in capital has tripled in the last 20 years. Property Wire: “but demand and turnover have crumbled since the June 2016 vote to leave the European Union and property taxes were raised.” Brexit is not the only thing holding the house price back, the noticeable increase in Stamp Duty and Land Tax stifle have also raised concerns to foreign investors.
Despite the reasons that are holding London house price back, the poll still found that London prices are predicted to rise by 1.5% in 2020. An estimated 42,500 households need home priced below market rates every year but there were only an average of 5,600 built in the past 3 years, leaving an annual shortfall of 36,900. Russell Quirk, chief executive of online estate agent Emoov, expressed a positive opinion for home owners looking to sell in the next few years: “History tells us that you can’t subdue London long term and therefore it's clear that the current downturn in the capital's volumes and values is temporary.”