Is pre-Brexit London the place to invest?
As the country looks to be heading to the polls, again, we’re going to take a quick look at the effect Brexit has had on the London house prices.
Brexit has caused more than its fair share of debate and confusion since the referendum in 2016. It would seem that each week that has gone by has been billed as ‘the most significant one’. In less than a week, we’ve gone from the brink of the Brexit bill being passed through parliament to the cusp of a general election. And as of writing, the EU can’t even decide on whether or not to grant an extension. But in truth, there isn’t a man alive that can tell you when it will all be over or what the outcome will be. But the one unmistakable fact about Brexit is that London house prices are falling.
Much has been said about the ‘uncertainty’ of Brexit being the cause of the price slump. But as this, by definition, is an unquantifiable input, it would certainly suggest that this is a reactionary market and now might be an ideal time to invest.
London price fall in numbers
According to the government’s UK House Price Index, London’s 1.4% annual fall in average house price was the largest in the country. Conversely, the North East saw prices rise by 3.3%. To break things down even further, Rightmove’s own index broke London’s fall down into boroughs and you can see area’s such as Camden (-2.4%) and Westminster (-3.6%) being amongst those being hit hardest this year.
As well as a general feeling of uncertainty, Brexit has been cited as a reason for businesses and individual professionals to ditch the capital as their base of operations and seek pastures new. But according to an article in The Financial Times, property investors believe that this is a fleeting gesture and London prices will return to boom.
So, what’s next for the London property valuations?
Hypothetically speaking, of cause, as much as the cloud of Brexit has caused prices to fall, there is no reason to say that the prices couldn’t rocket back up before the ink is dry on its ultimate agreement. Even within our own Property Investors Survey, 81% of respondents believed that the UK property market would bounce back post-Brexit.
With the possibility of an election in the near future, speculative property investors may seek to make a swift move into the market. One of the quickest ways that this can be achieved is with a bridging loan.
A bridging loan from MT Finance can be accepted within hours of the initial enquiry being made, making them ideal for investors needing to act fast. Loans range between £50k and £10m and a view is taken on poor credit, CCJs and arrears.
To get more details on bridging loans or to make an application, call MT Finance on 0203 051 2331 or fill in the contact form to receive a call back.