{"id":2928,"date":"2017-09-27T15:00:30","date_gmt":"2017-09-27T15:00:30","guid":{"rendered":"http:\/\/poseidon-gp.com\/property\/?p=2928"},"modified":"2017-09-27T15:00:43","modified_gmt":"2017-09-27T15:00:43","slug":"2928-2","status":"publish","type":"post","link":"https:\/\/poseidon-gp.com\/property\/2928-2\/","title":{"rendered":"London property will ‘bounce back in price once Brexit is decided’"},"content":{"rendered":"

London’s lethargic high-end property market will bounce back to growth once the uncertainty of Brexit has\u00a0been settled, according to Savills.<\/p>\n

After years of price falls and sluggish activity, the\u00a0most expensive homes in central London will rise in value\u00a0by\u00a08pc in 2020. Between 2018 and 2022, prices are forecast to grow by 20pc, which would recover the fall of 15pc\u00a0made since 2014.<\/p>\n

\u201cWe think the risks regarding London\u2019s position as a global commercial centre have been overplayed,” said Yolande Barnes, head of world research at Savills.\u00a0“Whatever the challenge from other cities, London will almost certainly remain a key global financial centre and develop as one of several European hubs for the growing tech sector.<\/p>\n

“Its prime markets will therefore benefit from new domestic wealth generation as well as attracting wealthy international buyers.\u201d<\/p>\n

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Savills’\u00a0assumption is based on the Government avoiding a “hard Brexit”, with transitional agreements put in place to “minimise business disruption” and free trade agreements established with EU members.<\/p>\n

However, it forecast that this\u00a0house price growth will be more moderate than in the past, when there was\u00a0average annual price growth of 5.7pc\u00a0above the rate of inflation between 1979 and 2014. This is partly due to much higher levels of stamp duty on expensive property.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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B<\/span>efore the UK’s relationship with the EU is decided\u00a0there will be flat levels of house price growth as investors put off purchases due to the uncertainty.<\/p>\n

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H<\/span>ouse price growth in expensive areas of London outside the centre will also be more moderate, at 5pc in 2020,\u00a0partly because the market is\u00a0“more influenced by trends in the high value employment sectors such as finance, banking and tech, as well as the availability and cost of mortgage finance” according to Lucian Cook, head of residential research at Savills. These are “all factors that will constrain price growth\u201d, he said.<\/p>\n

Asking prices are currently being slashed as demand for these homes is low: analysis of TwentyCi data by Savills found that in the 12 months to June there were 122 price reductions for every 100 properties on the market in London worth more than \u00a31m.<\/p>\n

Across the country, for every 1,000 \u00a31m home, 76 had asking prices slashed.<\/p>\n

There was also a 20pc fall in the number of such expensive homes brought to market in the first half of this year, compared to the same period in 2016.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

London’s lethargic high-end property market will bounce back to growth once the uncertainty of Brexit has\u00a0been settled, according to Savills. After years of price falls and sluggish activity, the\u00a0most expensive homes in central London will rise in value\u00a0by\u00a08pc in 2020. Between 2018 and 2022, prices are forecast to grow by 20pc, which would recover the […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2928","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9PjAq-Le","_links":{"self":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/2928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/comments?post=2928"}],"version-history":[{"count":0,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/2928\/revisions"}],"wp:attachment":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/media?parent=2928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/categories?post=2928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/tags?post=2928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}