London no longer calling: home prices fall post-Brexit

Political uncertainty, new tax cool demand

New York /
Mar.March 02, 2017 10:30 AM

London home prices are falling in the wake of Britain’s vote to leave the European Union and a new tax on property sales.

The share of sellers who slashed asking priced rose in 31 of the city’s 33 boroughs between July and January, according to data by listings site Zoopla. In the luxury enclave of Kensington and Chelsea, the average price cut in January was 8.2 percent.

“Over the past two years some agents have been overvaluing to win business from sellers, but given the state of the market post-Brexit, buyers are now very astute and won’t over pay, And Reductions Are Taking Place,” Capital Estate Agents Joe Mourat told Bloomberg. “The British public are responsive to negative news, and we definitely saw a downturn in activity after the vote.”

Speaking at the Knight Frank wealth conference on Thursday, Liam Bailey, head of residential research at the brokerage, said London prices are down 6 percent.

London’s residential real estate market has long competed with New York for wealthy overseas investors. Uncertainty over Britain’s political future appears to have cooled demand for luxury apartments in its capital, but New York is dealing with its own uncertainty in the wake of Donald Trump’s Muslim travel ban.

In its March issue, The Real Deal broke down how anti-immigration policies are threatening New York real estate’s status as a safe haven for foreign capital.  [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
RE/MAX CEO Adam Contos (Facebook)
RE/MAX revenue ticks up in Q4 but profit sinks
RE/MAX revenue ticks up in Q4 but profit sinks
(iStock/Illustration by Kevin Rebong for The Real Deal)
State will use undercover testers to combat housing discrimination
State will use undercover testers to combat housing discrimination
Zillow COO Jeremy Wacksman (Zillow, iStock)
Zillow using Zestimate to streamline cash offers for some homes
Zillow using Zestimate to streamline cash offers for some homes
Home sales were the busiest January on record, but still the fifth month of decline in a row. (iStock)
Pending home sales fall for fifth consecutive month
Pending home sales fall for fifth consecutive month
Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard
Making Lemonade: Don Lemon breaks even on Harlem condo sale
Making Lemonade: Don Lemon breaks even on Harlem condo sale
(IStock illustration by Kevin Rebong)
Smaller cities look to cash in on shift to remote work
Smaller cities look to cash in on shift to remote work
Douglas Elliman chairman Howard Lorber (Getty)
Douglas Elliman reports $14M profit, 50% revenue jump in quarter
Douglas Elliman reports $14M profit, 50% revenue jump in quarter
Glenn Kelman (Randy Stewart via Flickr)
Redfin revenue grows as it races to hire more agents
Redfin revenue grows as it races to hire more agents
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...