Home prices in London could come down drastically in case Britain eventually leaves the EU (European Union) without any deal being agreed upon as per reports. This could result in a buyer’s market where investors and local homebuyers would relish the chance to snap up properties at considerably lower valuations. This could also lead to real estate transactions going up since the momentum has slowed a little in the London real estate market on account of high prices and overall lack of ample affordable housing options.
As per reports, prices in London could come down by 1.6% in 2018 and 0.1% in 2019 and there is a 1 in 3 possibility of a huge correction in property prices in London by the end of 2019. The average price for a property in London stood at £609,205 in August 2018 with the average salary here being £39,476 as per studies. Global buyers may return to the market in droves with the chance to buy property at lower prices. Prices are in downward mode in London and southeast England while they are relatively going upwards in the rest of the UK. The overall momentum in UK is intact although affordability is a major concern for the housing market in the near future.
Average asking prices of UK homes stood at £301,973 for August 2018 and this could increase overall by 2% in 2018 and also by a similar percentage in 2019 as per reports. The BOE (Bank of England) has already increased its benchmark interest rate to 0.75% this month although the rate increases will be on the slower rate.