Brexit:how leaving the European Union could affect London's property market

Falling property prices but fewer affordable homes being built. We ask London's property experts what Brexit would mean for the capital's property market. Here's what they predict...

Britain has voted to leave the EU and the effect on the economy is already being felt with the pound sinking to a 31-year low. In the lead up to the referendum uncertainty had started to cause house price rises to slow, and the result hasn't allieviated the unease. So what's the future of London's buying and rental markets? We ask London's property experts for their predictions...

1. Property prices will fall
"A few gloomy headlines and people will understandably sit tight and play it out. However, this lack of activity in the residential market will prompt a fall in buyer demand and this is what will result in a drop in property prices."
Russell Quirk, CEO of 

2. There'll be more investment from overseas buyers
"Ideally, I would like to see London property bought by Londoners. However, this exit vote could reignite interest from overseas buyers from Asia, who would see greater value back in the London market if the pound continues to weaken."
Jonathan Hudson, National Association of Estate Agents

3.  But there'll be less transactions overall
“Caution, reduced transaction levels and downward pressure on prices in the months ahead are almost certain but we should not write off the property market.
Mark Posniak, managing director of Dragonfly Property Finance


4. Less 'affordable' homes will be built
"We are currently doubling the number of homes we are building for ordinary Londoners... we will have to put those plans on hold until we see what happens to interest rates, inflation, house prices and the confidence of banks and purchasers." 
Brendan Sarsfield, CEO, Family Mosaic

5. There'll be a London exodus
"Short term, we may see some positive news, with a cut in base rates and a possible tax-cutting emergency Budget... but this is likely to be a short-term gain, with London ultimately losing its hard-earned status as the world's financial capital, and global company boards relocating to capitals in the EU."
Ed Mead, executive director, Douglas & Gordon

6. The market will recover quickly
"The London market, as always, is likely to remain in its own impervious bubble despite the choice for Britain to leave. We’ve seen a few market wobbles since the results were announced, but they already seem to be starting to stabilise.”
Russell Quirk, CEO of eMoov

7. Demand will fall in the rental market - but prices will stay the same
"Almost half of agents expect the number of prospective tenants per property to fall as international demand weakens. Just over a quarter of agents expect the Brexit result will cause upward pressure on rental costs."
Association of Residential Letting Agents


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