Home Residential Property Central house prices set to fall due to Brexit

Central house prices set to fall due to Brexit

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22nd Aug 16 10:35 am

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Central London house prices will drop this year after Britain voted to quit the European Union.

According to research by Hamptons International, Knightsbridge and Mayfair will be one of the hardest hit areas from the fallout of the referendum.

Prices in these prime central areas will fall six per cent this year following a five per cent drop in 2015.

Fionnuala Earley, director of residential research at Hamptons International, said: ”Looking ahead to the prospects for the London markets is trickier than ever given the vote to leave the EU. Overall we expect prices in 2017 to fall and for those falls to be largest in prime central London. 

“That reflects the fact that prices have risen unsustainably in recent years and that expectations have altered substantially. 

“However there are still supply issues in the wider London markets which will act as something of a support. And for overseas buyers, the large fall in sterling means that the large discount in home currencies provides a large cushion against risk.

“Further away from the centre we expect prices to be more resilient. There is still demand as affordability is less pressured and the availability of finance at ultra-low interest rates can support that, but the factor affecting all of the markets is confidence.”

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