Wimbledon will remain best known for its annual tennis tournament throughout the EU and beyond no matter what result of today’s once-in-a-lifetime referendum delivers.
But after the tennis fans return home when the annual Wimbledon fortnight comes to an end on 12 July, debate about Britain’s role in Europe will continue no matter what the outcome of today’s vote.
Politicians, business leaders and the media would have you believe the result will go a long way towards determining the health of the residential property market in Wimbledon Village and its surrounding areas for the next six months and beyond.
The best-case scenario for the property market in Wimbledon would be for Britain to remain a member of the EU.
Political and economic uncertainty often causes buyers, sellers and tenants to put their property plans on hold.
Here at Robert Holmes & Co, we are aware of potential prime property buyers who are waiting for Britain’s status within the EU to become clear before deciding whether to purchase a home in walking distance of the All England Tennis Club.
If Britain votes to remain in the EU, we predict the property market in Wimbledon and beyond will spring back to life on the back of rising confidence in London.
Here at Robert Holmes & Co, we’ve noted a decline in the number of buyer enquiries in the second quarter of 2016 that is similar to the run up to the 2015 General Election.
That was due to the top end of the London property market going into hibernation because of the Labour Party’s plan to introduce a mansion tax on the owners of homes worth £2m.
But following the Conservative Party gaining an overall majority – which gave Prime Minister David Cameron the mandate to hold today’s referendum – buyers renewed their interest in property in every price range.
Rather than doubts about London’s status as a safe haven for property investment or whether homes in Wimbledon Village will retain their desirability if Britain exits the EU, there is another factor behind the recent reduction in buyer activity.
The introduction of a 3% stamp duty surcharge on second homes led investors to complete purchases before it came into force on 1 April.
What if Britain votes to leave the EU? London will remain one of the world’s greatest cities and a leading financial centre, attracting both internal and external investment. And Wimbledon’s status as one of London’s most desirable areas to set up home in will remain.
Many of the large, detached homes in spacious grounds in the roads off Parkside, which offer easy access to Wimbledon Common, and the luxury properties on the Coombe Hill Estate in nearby Kingston were built long before the European Economic Community was formed in 1957, and their value will remain high whether Britain stays in the EU or not.
Why? Because demand for luxury homes for sale and rent within easy reach of Wimbledon Common far outstrips their supply.
However, clouds of uncertainty will gather over the property market in London and beyond for the two years the Lisbon Treaty allows Britain to negotiate its exit from the EU.
On top of this, it is likely we will face another general election – creating yet more uncertainty in the property market.
The upside of a Brexit, however, is if predictions that the pound will slump in value prove correct, property in Wimbledon and beyond will be better value for overseas investors and Wimbledon champions other than Andy Murray or 25-year-old Johanna Konta.
As a result, it is not unreasonable to forecast that if Britain does vote Brexit we could see families wanting a larger home in the catchment area of Wimbledon’s best schools or young professionals wanting to live in the peace of Wimbledon Village yet just a 20-minute train ride to central London going head to head with overseas investors seeking to secure property assets close to the All England Lawn Tennis and Croquet Club.
This competition could increase the value of property in Wimbleon beyond the 8.2% rise in prices experienced in the past 12 months.
To discover how much your home in Wimbledon Village and the surrounding areas is worth, contact our valuations team today.