London’s housing market isn’t growing anymore. Here’s why

Political uncertainty weighs on demand

New York /
Aug.August 23, 2017 10:30 AM

The era of skyrocketing home prices in London may be over. Blame Brexit.

Prices rose a mere 1.6 percent in August compared to a year earlier, Bloomberg reported, and PricewaterhouseCoopers expects growth to slow even more in 2018 and 2019. Ten out of 14 economists interviewed by Bloomberg blamed political and economic uncertainty, largely connected to Britain’s vote to leave the European Union, which could lead to a jobs exodus.

“It’s not just a question of how many financial-services jobs will move, but also associated professions such as legal services,” Samuel Tombs of Pantheon Macroeconomics told Bloomberg. “It’s not the disaster that some were predicting and we expect London home values to remain stable but not fall over the next year.”

Berenberg Banks’ Kallum Pickering said that a new-ish stamp duty on home sales also had an impact and that there were already “exceptionally low property yields at the time of the (Brexit) vote.”

London competes with New York for wealthy apartment buyers, and the Brexit vote last year had some brokers cheering because it could shift demand to the Big Apple, as reported by The Real Deal. [Bloomberg] Konrad Putzier


Related Articles

arrow_forward_ios
Daniel Grollo and 106 Central Park South (Photo Illustration by Steven DIlakian for The Real Deal with Getty Images)
Trump Parc condo tied to embattled Australian construction magnate hits market
Trump Parc condo tied to embattled Australian construction magnate hits market
Richard Gere and Ryan Murphy with 81 Lyndel Road (Redfin, Getty)
Celeb buyer of Richard Gere’s Westchester estate revealed
Celeb buyer of Richard Gere’s Westchester estate revealed
REAL NY's Louis Adler, Compass' Eugene Litvak, and ROART's Ran Oron with the Milk Factory (REAL New York, Compass, ROART, Milk Factory)
East Williamsburg’s resi market reaches new heights
East Williamsburg’s resi market reaches new heights
Homeward founder Tim Heyl (Homeward, Getty Images)
Power buyer Homeward lays off 20% of staff
Power buyer Homeward lays off 20% of staff
Louise Blouin with 366 and 376 Gin Lane (Realtor, Getty)
Art publisher wants $150M for Southampton estate
Art publisher wants $150M for Southampton estate
From left: Richard Gere, Paul Simon and Edie Brickell in front of 82 Brookwood Lane in New Canaan, Connecticut (Getty Images, William Pitt Sotheby's International Realty)
Richard Gere revealed as discount buyer of Paul Simon’s estate
Richard Gere revealed as discount buyer of Paul Simon’s estate
Ascent Development’s Tien Vominh and Modern Spaces' Eric Benaim with 45-30 Davis Street (LinkedIn, Modern Spaces, Marvel Architects)
Modern Spaces sues developer over LIC exclusivity agreement
Modern Spaces sues developer over LIC exclusivity agreement
Bridgehampton, NY (Google Maps)
Divorce lawyer sells Bridgehampton home for $45M
Divorce lawyer sells Bridgehampton home for $45M
arrow_forward_ios

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

Loading...