Parliament has decided, the Bill has passed through Parliament and the only remaining issue is the Royal Assent for Article 50 to be invoked leading to the eventual exit of the United Kingdom from the European Union, better known as Brexit. The elephant in the room has now firmly stepped into the forefront and it is important to take a look at how this will impact on individuals, businesses, and property owners in the South London part of the greater conurbation.
A time of uncertainty is bound to follow, to some extent this has already taken root and it is likely to gain traction as the negotiations continue aided and abetted by the media. Now that Article 50 has been invoked the (political) games will begin in earnest.
House prices rose faster in recent months with high-end property in the vanguard as London property values made considerable gains. For individuals, and investors alike, it would appear that property values will continue to rise, by what degree is open for conjecture. Whilst the pros and cons of our withdrawal are negotiated there may be a slowdown in terms of overall growth and already we have seen the pound devalued, yes it was pre-planned anyway, and collectively the burden on family budgets is likely to be considerable. With interest rates at an all-time low people are still buying property regardless of any perceived lack in confidence.
It is anticipated that the Capital’s Housing Market will be hit hardest by any adverse impact from Brexit, much will depend on the likely outcome of negotiations with regard to the Financial Sector which currently, and historically, does much to reinforce the demand for high value property in the City.
Whilst it is true that existing property owners in the City will be able to maximise their return by selling, they will then have to buy new property at no small cost. The general inflationary spiral also makes it very difficult, if not impossible, for new buyers to get on the property ladder. Increased house prices have propped up consumer activity, and consumption is the backbone of the National economy, at a time when wage rises have been more moderate. It is also a fact worthy of note that a substantial amount of property purchases are investment based for the rental market, further limiting the availability of affordable housing for purchase.
South London estate agents say continue to see large scale property rises, bricks and mortar are solid investments in times of uncertainty. Whilst Brexit negotiations rumble on over the next two years we can confidently expect to see high-value property being an attraction to movers and shakers domestically and internationally as the City of London takes its place on the International scene. Simultaneously, we can expect affordable housing suburbs to move further out of the City causing a greater pressure and the need for good public transport infrastructure.
The die is cast and we will watch with interest.