The impossible has happened. London properties have actually DECREASED in price since Brexit. A drop in the value of the pound and price cuts of nearly 20% have created Brexit discount bargains on some of the most expensive homes in central London.
Of course, this will only apply to those who have millions of pounds to spare, but this is still an anomaly in the London housing market.
This comes as the UK property market was one of the first sectors hit by uncertainty after the controversial decision for Britain to leave the EU on the 23rd June this year. At its peak, more than £18bn worth of commercial property funds had been frozen as uncertainty took over.
Business opportunities were naturally spotted and taken by wealthy foreign buyers. A Canadian buyer bought a sought-after property in Holland Park, West London at a discount of around a third, thanks to the >10% drop in the pound. The seven-bedroom, five-bathroom home home with a pool was bought for £11.5m instead of its original £14m list price.
Tom Bill, Knight Frank’s head of London Residential Research, said: “Since the vote, a number of buyers have requested discounts due to the climate of political and economic uncertainty”
After the Brexit vote, Central London prices fell by 1.5%. This is the biggest fall in nearly seven years.
Property consultant Charles McDowell said: “They think they’re getting a good house which is the most important thing and they also feel they are paying a discounted price, certainly discounted on what they’d be paying two years ago”.
According to a Rightmove survey, asking prices fell by a monthly 1.2% nationwide between 10th July and 6th August, with London recording the biggest drop with prices down 2.6% percent.
If you want to make the most of this national Brexit discount, get in touch with Hawkhurst AI to discuss starting or managing your investment portfolio on +44 (0) 345 894 8441 or email us at admin@hawkhurstai.com.