{"id":20692,"date":"2018-08-30T15:30:59","date_gmt":"2018-08-30T14:30:59","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=20692"},"modified":"2018-08-30T15:30:59","modified_gmt":"2018-08-30T14:30:59","slug":"london-property-market-crash-what-are-the-predictions","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/news\/london-property-market-crash-what-are-the-predictions\/","title":{"rendered":"London property market crash: what are the predictions?"},"content":{"rendered":"

House prices in London have been faltering of late, and experts have now revealed their views on how a “disorderly” Brexit could further impact the capital’s property market.<\/strong><\/p>\n

A quarterly poll by Reuters of around 30 analysts and housing market experts has concluded that there could be a one in three chance of London’s housing market<\/a> losing significant value by the end of next year if we end up with a “no-deal” Brexit.<\/p>\n

The panel also predicted that property prices<\/a> in the capital will drop by 1.6% over the course of 2018, with a further, more modest 0.1% fall next year. As the deadlines for coming to a decision on a Brexit<\/a> deal loom, fears are rising that leaving the EU without a formal agreement being reached could be a very real possibility.<\/p>\n

According to the experts, there is around a 29% chance of a “significant correction” in London’s housing market before the end of 2019, although at the top end of the scale one panel member believed this risk was actually 79%.<\/p>\n

Interest rates could change<\/h4>\n

Tony Williams at property consultancy Building Value said that central London was “tanking because the traditional international buyers<\/a> are staying away – and the quantum of buyers is falling.” He added: “A disorderly Brexit will exacerbate this trend.”<\/p>\n

The latest figures from Hometrack for July revealed that London house prices had fallen annually by around 0.1%, although the average property asking price in the capital according to Rightmove’s August data is still sky-high at \u00a3609,205 – well above the UK average of \u00a3301,973.<\/p>\n

Andrew Brigden at Fathom Consulting commented: “We see little upward or downward pressure on house prices at current near-zero interest rates<\/a>. However, risks lie substantially to the downside.<\/p>\n

“Were interest rates to return to pre-crisis levels or higher, which may prove necessary if there were a sharp fall in sterling after a General Election, for example, then house prices could fall by around 40%.”<\/p><\/blockquote>\n

A different story in Manchester<\/h4>\n

The north-west<\/a> city of Manchester has seen markedly improved performance over recent years compared to London, and the forecast is bright for the city. According to Zoopla, more than a third (38%) of investors<\/a> looking at purchasing property in the north think house prices are set to rise in Manchester, and 27% would be motivated to invest there because of the strong rental income.<\/p>\n","protected":false},"excerpt":{"rendered":"

House prices in London have been faltering of late, and experts have now revealed their views on how a “disorderly” Brexit could further impact the capital’s property market. A quarterly poll by Reuters of around 30 analysts and housing market experts has concluded that there could be a one in three chance of London’s housing… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":20704,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,4,12,59,6],"tags":[33,11,341],"class_list":["post-20692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-investment","category-london","category-trending-news","category-uk-housing-market","tag-house-prices","tag-london","tag-newsletter"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/20692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=20692"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/20692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/20704"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=20692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=20692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=20692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}