The house prices in the prime locations of London have decreased by 1.5% in the year till July. Many people are blaming Brexit for it. But according to property experts, Brexit has nothing to do with it. According to property experts, these are the reasons for the price drop of these houses.
- The introduction to Brexit has made the real estate market in volatile. But the biggest impact was due to the higher rate of stamp duty on second homes in April.
- The price drop was a natural effect of the steep price rises between 2009 and 2013. It accelerated due to the two stamp duty increases and other tax measures.
Brexit has in fact increased the buying activity in the prime locations of London. This is due to the falling pound that is encouraging sales to foreigners. About 40% more people were looking for prime properties in June this year compared to the same month last year. Brexit affected how people choose to buy a house. Buyers are now more interested in the quality of developments and amenities than the location.
Still, many people think that Brexit will have a disastrous effect on the overall economy of UK. It will cause corruption in many industries. The ultimate result might be a recession. Despite all these, we must be optimistic about the whole situation and hope that the home prices will kick up in the prime London locations just like before. So, we expect more people to buy homes in the prime locations in future.