20 Jul 20.07.2016 Super rich and investors will continue buying up central London prime property
20.07.2016 Super rich and investors will continue buying up central London prime property
Along with further political changes and policies, Brexit has had an immediate effect on the UK economy, weakening the national currency (the pound fell to a 31-year low, sinking 10% in value) and knocking down the property prices. Although Bloomberg, Morgan Stanley, and HSBC analytics are being skeptical regarding the pound positive prospects in 2016, but it is not as simple with the property market. The Financial Times has posted a huge analytical article, referencing Knight Frank and Savills, who have kept warning since April that London, being the prime market, would bear the brunt of early Brexit fallout. However, FT writes, it is estimated that from 60 to 70% of London’s super-rich property owners and/or investors come from outside the EU, suggesting they wouldn’t consider the loss of the EU’s single market as the most crucial factor. The priority for buyers in such London areas as Mayfair, Kensington, Chelsea, and others is still personal safety, the rule of law, and the offsetting of the stamp duty due to the weakening of the pound. Brexit, however, could trouble European bankers who made London or the UK their home. They may not necessarily rush selling their properties before the Article 50 is invoked, but the precedent has been created. The average property in Kensington & Chelsea on the day of the referendum cost £110.000 higher than it is now. Thus for many international buyers it is perhaps the best time to buy or invest.