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London homeowners avoid selling amid Brexit jitters

For prospective buyers, resi inventory in the city is growing scarce

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.

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“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 [TRDataCustom] said Brexit had been a “black eye” for the city’s market. [Bloomberg]Miriam Hall

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