London homeowners avoid selling amid Brexit jitters

For prospective buyers, resi inventory in the city is growing scarce
January 16, 2017 02:05PM

London homes (Credit: Fin Fahey via Flikr)

London homes (Credit: Fin Fahey via Flikr)

The number of London residential properties hitting the market dropped significantly in January, as sellers remain wary of the imminent Brexit process and a tax increase.

In January, new listings fell 14 percent from a year earlier, according to property website operator Rightmove. The average asking price of a property in the city jumped 1.4 percent in January to 624,935 pounds ($759,000), Bloomberg reported.

“Last year saw a rush of owners trying to exit at what they perceived as the top of the market, though in truth those in inner London were already a year too late,” Rightmove director Miles Shipside told the publication. “Owners now seem well aware of the more challenging conditions, with the high stamp-duty costs and Brexit uncertainty perhaps making them hold back from trying to sell.”

Last month, Rightmove predicted prices in the city will decline 5 percent in 2017.  The Brexit vote in June raised New York City brokers’ hopes that international investors would flock to New York City. In October, heavyweight Barbara Corcoran TRData LogoTINY said Brexit had been a “black eye” for the city’s market. [Bloomberg]Miriam Hall