27 Sep

DM & Co Property Column: October Market Update

DM & Co Property Column: October Market Update

London has a rich history, having been a major settlement for over 2000 years. Two millenia after the Romans named it “Londinium”, it is now the world's most visited city, the world's largest financial centre, and the world's leading investment destination.

Of course, the housing market in London has been a hotbed of competition, and price growth has, for years, been quite remarkable. Not only has it been difficult to stimulate the amount of new home construction required in the capital, but employment opportunity has continued to be a major driver of increasing population from all around the globe; giving rise to both a supply and demand problem that largely accounts for the price growth.

There's no question that the current market conditions are quite challenging – the rather polarising Brexit vote has certainly had an unsettling effect. Even now, well over a year on from the vote in June of 2016, negotiations are under way, but the consequences of the vote are yet to be fully realised, as the fine print will define what the UK and London look like post-Brexit. With people from outside of the UK playing an important role in the London economy especially, the detail does matter, and the uncertainty is what makes it difficult to plan for the future. The Treasury have talked about tougher restrictions for foreign investors buying British property, which could be a further factor to consider.

The market has unquestionably shifted in favour of the first-time buyer, and this is quite a change, since in the past competition has been fierce between first-time buyers, private landlords and investors from further afield. Those that have been stuck in the rental trap may for the first-time see viable opportunities to own their first home, with help to buy and shared-ownership schemes that could have a very positive impact. For those looking to take the next step onto a larger home, with house prices as they are, the savings on a larger a home are likely to be greater, as competition for these homes is not as strong as for first step homes. It's a challenging market at the moment, but at DM & CO we'd be delighted to talk to you about the exciting opportunities in the local area!

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