It is has been a strange time for the London property investment market this past year as Brexit threw unprecedented challenges at the sector.
The time directly after the vote was tough as investors had no real clue as to the effect of the long-term implication, over 18 months later we can say with a certain amount of conviction that the London property investment market sailed the storm in fine fashion, to the point where we have seen considerable capital gains as well as strong yields.
As the saying goes nothing lasts forever and this may just be the case for the London property market.
According to recent research house prices in London are falling faster than nearly all other areas in the United Kingdom, with some experts of the opinion that Brexit has finally caught up with the London property investment market.
We are not quite in Chicken Little territory just yet as the decline is prices at the moment is at 3.2%, the largest fall since 2010. So, will the rest of the UK housing market follow suit?
London is pretty much a stand-alone entity within the UK property market where 54% of property prices have yet to return to their 2008 levels.
One key factor at the current moment in time is that the European Union is adamant that London financial markets will not have easy access to European financial trade once the UK leaves the European Union. This is more of an annoyance then a big problem as most experts will concede that Europe needs London as much as London needs Europe, and this is not different for the London property investment market.
It is possible to attain double-digit rental yields in the North of England and Scotland although these properties may offer limited capital growth when compared with London.
If we were taking a realistic view of the UK property market it would make perfect sense to quote prices excluding London because London bears no resemblance to the rest of the UK.
UK wide property prices, excluding London, are not immune from general market movements and no doubt the south-east of England will suffer the most outside of London. However, anyone who suggests that the rest of the UK market will follow London property price falls to the same degree should perhaps review their research and statistics. House prices outside of London have not been inflated to anywhere near the same extent than those in London as we are starting to see now.
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