Property price growth in the capital will be put “on pause for the next two years” until Brexit negotiations are fully completed, according to a Savills analysis that was recently released.
Brexit uncertainty and a newly proposed stamp duty surcharge on foreigners is likely to “temper recovery”, with Savills forecasting an overall 5% drop in prime Central London prices by the end of this year.
The predictions from Savills highlight recent evidence that London’s more expensive properties have endured a slowdown in the past few months, with property building firm Telford Homes stating that buyers looking for houses above the £600,000 mark were taking a “wait and see” approach in the run-up to the UK’s exit from the EU.
However, despite the short-term projections illustrating a drop in prices, the new five-year forecast predicted prices will bounce back in two years’ time. In prime Central London, Savills are predicting house prices will climb 6% in 2021, with a 12.4% overall rise between 2019 and 2023.
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