27
Sep
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!