Brexit Aftermath Having a Bad Effect on London’s Prime Real Estate Market
Brexit's effects are in full swing in Britain, and it isn't looking good as prices for newly-built homes have since dropped 25%. Mansion Global reported that the whole UK is bracing for the drama of its 'Brexit' to drag on, but the fallout isn't looking good for various markets. This is most especially evident in the lucrative and luxurious London property market.
Prices of homes in the area have remained level at £1.8 million (US$2.37 million) in February. It translated to a fall of 6.2%, compared to January, and 12.7% during that quarter. Other than this, new-build prices appear to be higher although they're still not climbing to values that make industry observers secure.
Today's average price for a newly-constructed home in the area is around £2.26 million. This makes it twice the price of an existing house. The price comes as a result of some completed ultra-high-end properties, as relayed by London Central Portfolio, a UK real estate firm observing the current trend of pricing.
It's the effect of Brexit, which has even British Prime Minister Theresa May offering to leave her office. Quick resolutions are being formulated for the impending leave of the UK from the EU, but so far, nothing has been found. Most of the House of Commons are looking for reforms that may still leave the UK a strong trading partner of the EU.
BBC News reported that leaving office was the ultimate price PM Theresa May seemed to have lined up.
There may be other plans for May's parliament allies should her 'Plan A' fail to push through, but at the moment, it is unclear. What seems certain is that they should not worry as much--people who support the 'stronger trade' are there. The resolution should push through sooner, though, rather than later.
If it does fail, the fallout of a lengthy 'Brexit' process will continue to weigh in on the London property market. If it's London today, it could spread out to other property markets in the UK tomorrow. By then, it would look messy--as more prices begin to rise uncontrollably, it would look as if 'Brexit' was the wrong move, after all, and it should not happen that way.