Reports in today's London press claim that both residential
and commercial property prices face a huge slump following the
Brexit vote, with luxury homes facing the biggest drop. Steep
reductions, some as much as 15%, are being seen in sought after
parts of London and many property deals that were almost at
completion fell through when the result of the referendum became
However, for the investor prepared to play the long game the
situation opens up a small window of opportunity that may never
come again. Even with the latest changes to the UK property market
in the shape of higher stamp duty, the changes to taxation for buy
to let investments and additional charges for some overseas buyers,
the falling London property prices may still provide interesting
propositions for the right investors.
Latest figures today from agents Savills show that prices in
central London's most exclusive neighbourhoods are already 8
per cent down on their peaks in the third quarter of 2014.
Shopping centre developer Hammerson has enjoyed a strong first
half, despite uncertainty in the property investment and lettings
markets in the run-up to the EU referendum.
The company completed £12.9m of leasing deals in the first
six months of the year, 19pc higher than a year earlier, while
income from rentals rose just over 2pc.
But slowing growth in the value of its portfolio, particularly
its UK retail parks, meant Hammerson 39's profits were
more than 50pc lower than the previous year, at £162.5m
compared to £326.1m.
London property prices are expected to fall by around five to
ten per cent as a result of the Brexit vote, according to a report
from analysts at Peel Hunt, as "uncertainty has replaced
confidence" in the British real estate market.
Thousands of London homes have had their prices slashed since
the Brexit vote a week ago amid warnings of a slump in the stunned
housing market, the Standard reveals today.
An Evening Standard analysis has found a huge spike in nervous
home owners cutting their asking prices after the surprise result
of the referendum last Friday morning unleashed what was described
as "a perfect storm" by one leading investor.
The impact is expected to be most severe in the new luxury
development along the river from Vauxhall to Docklands where falls
of as much as 40 per cent are feared.
At Giambrone, we have a team of expert, dedicated solicitors who
specialize in international issues from buying property abroad to
handling an international divorces and division of foreign
assets. We know the laws and we know how best to help you to
achieve a positive outcome for your case: the language and cultural
barriers often make it necessary to seek professional legal advice
when buying and selling abroad.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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