Whether you voted for it or not, Brexit has happened. While many predictions were made about what would happen to the property market should the UK vote to leave the EU, now we are getting the first indicators of what is actually happening.
And it looks like property prices in London could be taking a hit.
Property Prices to Fall by up to 10%
According to this article in the Telegraph, property prices could be set to fall in London by up to 10% over the next few months.
Peel Hunt analysts claim that uncertainty in the real estate market as a result of Brexit is partly to blame for this. It suggests that commercial property is going to suffer the biggest fall in value, with offices and retail outlets hardest hit.
Could Prices Fall Even Further?
According to this report in the Evening Standard, property prices could fall even more than this in London.
Thousands of properties have seen their prices cut following Brexit, and an analysis carried out by the paper found that many home owners are now slashing their asking prices in order to tempt buyers.
It suggests that luxury developments are set to be hit particularly hard, with one development seeing a potential fall in value of up to 40%. Once again, the level of uncertainty following Britain’s exit from the EU is being blamed for the fall in value.
French Bank Warns on London Property Prices
And outside of the UK, the French bank Société Générale has suggested that prices in London could fall by over 30% for high-end properties, and that in some parts of London the prices could drop by even more.
The bank suggests that at least part of the reason for this prediction is because more companies may start to move their employees out of the UK as a result of Brexit.
Is It Time to Buy a Property?
The question that many people are now asking is whether this is the right time to buy a property in London. This is a difficult question to answer because no one really knows what will happen to property prices in the coming months.
It is still too soon to say what the full impact of Brexit will be on the market, but it's fair to say that a more pronounced fall in the value of properties could be coming, and that this will be good for buyers.
However, you might want to hold off buying for now to see what happens. If prices continue to fall, you may be able to pick up a better bargain a few months down the line.