London Residential Market Update

As we start 2019 the London residential property market has continued to struggle in terms of demand and values.

Most agents have reported that buyers are generally not committing until after Brexit, perhaps exacerbated by Carney’s comments regarding how far the market will fall in a post Brexit world.

From discussions with agents outside London this buyer malaise is starting to have a marked impact across the Home Counties with few anticipating little or any changes in demand until Q3 this year.

In my opinion Carney’s comments of a steep fall in prices are unlikely after Brexit, mainly because we have been seeing these falls for over a year and the anticipation of change can often be worse than the effect of the change itself. However, it is essential that the government secure a Brexit deal next year or any recovery will also be put back.

When prices fall, they can often over-correct until a reason arises for the buying processes to restart. If we consider the 2008 falls, precipitated by the financial crisis, the Bank of England cutting interest rates reversed this trend and buyers returned and prices inflated again. I would hope the conclusion of Brexit, in whatever form, should precipitate greater buying activity and a strengthening of prices.

Whilst the above commentary refers to the general London market, the higher priced London properties have already fallen by around 20% since their 2015 peaks. These falls seem to be beginning to stabilise and buyers are seeing “value” for the ­first time since the early noughties. The braver buyers securing relatively good deals in this current market may see some reasonable capital appreciation over the next 5 years and this current period may, in the years to come, be seen as the trough. Notwithstanding this, unless the punitive stamp duty charges are amended, the top end of the London market will never return to high volume demand.

So whilst the outlook for the residential market is not ideal, prices did need to settle down after years of strong inflation and, as long as interest rates stay low then the falls should be manageable.

For further information about this article or any queries in relation to residential property please contact James Perris.

What Our Clients Say

“For my demanding and often complex clients, high professional standards from my trusted network are mandatory, but James and his team really do consistently offer flexibility, speed and crucially additional emotional intelligence. A pleasure to engage and include in my client work”
Jeremy Hill
Senior Private Banker, SG Kleinwort Hambros Bank Limited
“De Villiers have always been very approachable. They offer everything a lender could expect from a firm of chartered surveyors – and that little bit extra, too”
Mark Posniak
Managing Director, Octane Capital Limited
“De Villiers consistently provides a highly professional and prompt service at a reasonable price”
Alpa Bhakta
CEO, Butterfield Bank
“De Villiers are totally focused on customer service and satisfaction, nothing is too much or too difficult for them, they are always friendly, courteous and willing to go the extra mile”
Colin Sanders
CEO, Tuscan Capital Limited
"De Villiers deliver everything a bank wants and expects from a valuer and when asked for something above and beyond the normal then the answer is usually “yes, that’s no problem”. "
Richard McAdam
Head of Residential Lending, Ahli United Bank (UK) PLC
“De Villiers offers an extremely professional and thorough report combined with efficiency and speed of service. De Villiers are always accessible and accommodating, working with tight timescales at very short notice and communicating with the client and their agents at all times”
Caroline Roberjot
Partner, Harbottle & Lewis
“Judgement and advice you provide Precise has never been questioned and is never in any doubt"
Richard Lawton
Head Of Short Term Lending, Precise Mortgages

Stay Updated

We would love to keep you updated occasionally with our news and views.
You can unsubscribe at any time.


* indicates required

Intuit Mailchimp

© 2024 De Villiers Chartered Surveyors

Web Design by Make it Seen Media