Brexit is being seen a huge driver to housing sale slump in London. The normally strong market has seen 35% of all sellers dropping their prices over the past year. This is in comparison to 29% cut seen when the Brexit was originally voted on. These cuts can be huge in expensive areas, for instance in Richmond, they are looking at a 85,000 GBP cut in average home prices. While this may be a boon for the borrower, it can cause problems with lending if future trends are trusted.
Key Takeaways:
- Owners are selling their houses at around 35% less than when they originally listed them.
- This in comparison to 29% in pre-Brexit numbers of 2016 and Brexit seems to be the culprit for these shifts.
- This shift can be huge, for instance in Richmond, this lead to almost 89,000 GBP in cuts.
“Economists predict that a number of factors will weigh on house price growth in 2018, including falling real wages and weak consumer confidence as Britain’s future outside the EU remains uncertain.”