In a pressing question that has plagued industry watchers for quite some time now, there is immense speculation about the movement of home prices in the United Kingdom (UK) after Brexit comes into effect. Prices have softened in several areas of London, particularly in case of high-end real estate although home prices have continued their steady growth outside of the M25 and north-west UK has seen the highest home price increases in recent times. UK home prices grew by 0.3% in November 2018.
Some experts feel that UK home prices may increase by 0.5% while they may go up by roughly 1.5% in London. These experts feel that the future remains positive for the London and UK real estate markets since affordability of homes may go up after Brexit and this may spark higher demand in turn. The average home starts figure may hover somewhere around 175, 000-180, 000 in 2019-20 as per reports although they will start increasing from 2021 as per forecasts. A deal with the EU, in case that happens, will make home prices increase by roughly 11.4% over the next 4-5 years as per these experts. Other experts peg average property price growth at 1.5% in the UK for 2019 although they feel that London home prices may come down by roughly 2% although a 21.6% increase in prices is forecasted for the north-west. Some experts forecast almost unchanged prices for the UK market with even a slight depreciation of 1% in London.
There are some experts who also feel that London prices may come down by 10% over the next one and a half years and this may drive higher buyer interest and sales figures in turn. Some feel that UK prices may increase by approximately 1% for the year. Some also feel that London prices will remain mostly on the flatter side although they may increase by 1.6% and 3.5% in 2020 and 2021 respectively. Between 2019-2023, London’s property prices may grow by around 10.5% as per several experts. All in all, the scenario looks pretty optimistic for UK and London real estate overall in spite of uncertainty surrounding Brexit.