London property prices probably rose 5.0% in 2016 but are expected to fall by 0.5% next year, according to a Reuters poll of analysts.
House prices across Britain will rise 2% next year, stunted by the uncertainty caused by the UK’s decision to leave the EU in June.
Prior to the referendum, a survey predicted property price rises would be twice that, but this prediction was made when the general view was that Britons would vote to remain in the EU.
The word ‘Brexit’ aside, the other word of the year in contention could perhaps be ‘uncertainty’. London residential property has long been regarded a safe haven for overseas investors. That hasn’t changed. Indeed, the plunging value of the pound has helped to entice overseas buyers to the London market in the wake of the referendum.
For many first-time buyers, buying a property in the capital remains out of reach for those without financial assistance.
Despite a reduction in the cost of borrowing and the Chancellor’s pledge in his 2016 Autumn Statement to set aside funds to build genuinely affordable homes, buying property in London remains a pipe dream.
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