August 18, 2016
Property prices remain steady as London prepares for the night tube
Property transactions and demand still high in the capital
It’s now been around two months since the EU referendum. Slowly but surely we’re starting to see more data showing how the London property market has fared since June.
It’s been well-documented that the Prime Central London property market, where homes sell for millions, has struggled since the Brexit vote. It has been faltering for some time, though, primarily due to stamp duty changes announced in December 2014.
What’s more, many London firms have reported a surge in demand from overseas buyers who are looking to snap up homes in the capital. These buyers will benefit from a post-Brexit landscape.
There is still certainly a high level of demand for property in London, with transactions and viewings consistent.
Some sellers may have had to discount their asking prices marginally in order to push through a deal. However thanks to the significant house price growth in the past few years, they are still benefiting from healthy capital gains.
House prices remain steady
Rightmove’s latest findings have shown that the typical asking price of a property coming to market in the last month has been 1.2% lower than in July.
This is, however, an entirely normal seasonal dip. It is due mostly to more people being on holiday rather than anything to do with Brexit.
Nationwide’s most recent House Price Index for also showed little impact from the uncertain period leading up to the EU referendum, with UK house prices rising by 0.5%.
A third report, from the Royal Institution of Chartered Surveyors, declared that house price growth faltered in July in the instant aftermath of the Brexit vote. However, the UK’s surveyors predict that the level of sales and house price growth will remain at stable levels in the coming months.
With the fundamentals of the housing market the same, there are no signs that house prices will drop dramatically – with demand still significantly outstripping supply.
London landlords and tenants prepare for the Night Tube
In the world of lettings, the long-awaited arrival of the Night Tube this month is expected to trigger rent increases in some parts of London.
No longer will the residents of Loughton, Walthamstow and Ealing Broadway (to name but a few) have to catch the last tube or face the prospect of a long-winded night bus home.
According to the Association of Residential Lettings (ARLA), 24% of its London-based members expect to see some increases in average rents around the tube stations which are connected to the new 24-hour service. These areas will instantly become much more desirable and sought-after.
The Night Tube launches on Friday August 19, with the Central and Victoria Line both operating for 24 hours a day on Fridays and Saturdays.
In other news, the new Housing Minister Gavin Barwell has agreed to meet those campaigning against the government’s planned changes to mortgage interest tax relief.
They will meet with the MP in early September, a few days before the court date at which they will find out whether their right to trigger a judicial review of the original decision has been successful or not.
For more help and advice on buying or selling a home in London, please get in touch with Atkinson McLeod.
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