Brexit - What it means for the London property market
So, Britain has voted in favor of leaving the European Union. We’ve had a few days to take it all in – but what does it all mean?
The result of the in-out vote has cast doubt on what a post-Brexit Britain means for the London property market. We’d already seen a slowdown in the months leading up to the referendum as the prospect of a Brexit weighed heavily on buyer confidence. What next?
Will the tide turn? Temporarily, yes. But at Fraser & Co our professional view is that, despite the result, London continues to be a sound, solid investment. Here’s why.
First, will the iron shutters clamp down and see a mass sell-off of property in the capital? No. It’s an understatement to say that negotiations on post-Brexit arrangements will be protracted. Unraveling the fall-out will take a long, long time. Nothing will truly be in place until after the next two years.
Second and more to the point, the fundamental truth remains unchanged. In a matter of supply versus demand, Londoners are short of roofs over their heads. That gap isn’t going to close overnight, any time soon or in the foreseeable future.
Third, even though Britain’s links with Europe are changing, London is getting better connected. Infrastructure projects like Crossrail will have a huge impact. Transport ties and regeneration, from city to suburbs, is seeing more areas of untapped potential come into play – and there will be deals to be done.
Last and for all the talk of the value of the pound, the smart sterling will still be far better off in London property than any other asset class such as the stock market, savings accounts, bonds or oil.
The upshot is the long term outlook is positive and Britain’s capital remains the place to invest in, not opt out.
For more information about the implications and process of Brexit following from the referendum result, including how the government and the next Prime Minister will approach the issue, pleaseclick here.
At Fraser & Co we understand buyers and investors will have plenty of questions about where Brexit leaves them and the London property market. Get in touch with one of our experts and we’ll be happy to help.