Higher Taxes and Questions About Brexit Provide a Reprieve to Property Buyers in London
This is excellent news for those who have been priced out of the London property market. Average home values have risen threefold over the course of only twenty years. There are reasons for this recent development that auger well for the health of the market in the future.
Foreign Investors Will Soon Become Much Less of a Factor
London is one of the world's great cities. This makes the city a natural focal point for ambitious, capable people from all over. The United Kingdom then joined the European Economic Community nearly a half-century ago. This move made it much easier for foreigners to invest in property in London.
Things really picked up starting less than a couple of decades back. Since then, investment activity has combined with demand from would-be homeowners. This led to the London property market being one of the fastest appreciating in the world.
The United Kingdom will part ways with the European Union in 2019. Things are set to change drastically. Foreign investors will no longer find it anywhere as easy to move capital to and from the United Kingdom. This will make projects there less accessible, profitable, and appealing.
Many of the broader economic implications of the Brexit split should also work to calm down formerly fast-growing house prices in London. As many professionals who are citizens of other countries will be leaving the United Kingdom entirely, more stock should become available.
12:00 pm, Aug 6, 2018