The re-election of a Conservative government with a sound majority has removed some of the uncertainty that has weakened the property market in recent years.
However, one of its manifesto pledges is the introduction of a 3% stamp duty surcharge for foreign buyers, and this will adversely affect the high value properties that have, over recent years, been attractive to overseas investors.
Although the United Kingdom will now leave the European Union, the terms of the withdrawal have only been provisionally agreed, and in outline form only. The nature of our new trading relationships, and their effect on the economy, remain uncertain.
The most recent indices indicate that the average value of a property in Prime Central London in the 12 months to this October is down 2% to £1.8M and further that sales for the same period are down by 8.3%.
However, in Greater London (not including Prime Central London) prices during the same period rose by 2.3%, which is an encouraging sign given the recent political chaos.
London’s Surveyors and Valuers are, on the whole, cautiously optimistic, but remaining mindful of the fact that the major economic adjustments that are now inevitable could adversely affect some sectors within the property market.