London’s housing market is experiencing a slowdown, with prices falling at their fastest rate since 2009. The decline is particularly noticeable in the capital’s wealthiest areas, where prices have dropped by 5% in the past year. This trend is partly due to changes in stamp duty and Brexit uncertainty, which have both affected buyer confidence.
Despite the downturn, some estate agents remain optimistic, pointing to the resilience of the London property market in previous periods of economic instability. They argue that the current slump is a temporary blip, rather than a long-term trend.
On the other hand, analysts warn that the capital’s housing market could face further pressure in 2018, as interest rates are expected to rise. This could lead to higher mortgage costs, making it more difficult for buyers to afford properties in London.
Overall, the outlook for London’s property market is mixed, with uncertainty over Brexit and the potential for higher interest rates weighing against the city’s enduring appeal as a place to live and invest.
In the meantime, the slowdown is providing opportunities for buyers, who are able to negotiate lower prices. However, sellers are having to adjust their expectations, as properties are taking longer to sell and achieving lower prices than in recent years.
Go to source article: https://www.ft.com/content/9f0a8838-fa25-11e7-9b32-d7d59aace167