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London property market may be hit especially hard by Brexit vote

UK property

Britain’s vote to leave the European Union will mean the property market flat lines over the rest of 2016 followed by price falls to around 2018.

Estate agency JLL had predicted that to be the “best case scenario” in the aftermath of last Thursday’s referendum. However, not every property business is so sure.

Haart estate agency believes last week’s result to be a “huge opportunity” for the country, offering a ray of hope to those with cash sunk in bricks and mortar.

JLL head of residential research Adam Challis said: “The result brings an unprecedented new dawn for Britain, with considerable uncertainty over the likely impacts for the next few years.

“We expect an immediate slowdown in housing market transactions, in the order of 10%-15%, resulting in downward pressure on prices for at least a couple of years. We anticipate current activity levels will return but this is unlikely before late in 2018.

“Price growth will be flat over 2016, reversing gains from the first half of the year, while our central expectations of price falls between 3% and 5% in 2017 and 2018 are based on the best case scenario of a relatively orderly adjustment to our new political realities.”

JLL also called on the Government to shore up the economy and do their best to push through new agreements quickly.

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Paul

The author Paul