Brexit and low interest rates are the main factors that will affect the real estate of England

The market of real estate of Britain in the 1st quarter of 2016, could not accurately reflect the balance of supply and demand, as heightened pressure buyers under the influence of the deadline, which was supposed to come April 1, the day of the introduction of additional Stamp duty for investors in real estate of England.

The latest market analysis from Knight Frank showed that the demand in the 1st quarter increased in all regions and, according to the mortgage lenders Council for Mortgage Lenders, the size of home loans in February 2018, was the largest since 2008.

Most likely, demand has cooled slightly since April, but the overall background in the market of real estate of England is defined by the housing shortage and low interest rates on mortgage loans that will continue to stimulate the market. Many investors might take a time-out after a hard marathon the last months, but those buyers that do not reflect changes in taxation, namely, those who buys for himself a unique housing will continue to actively solve their housing problems. Another factor influencing the market will be uncertainty in connection with a possible British exit from the European Union. Of passion in connection with Brexit increase as we approach the date of the referendum – June 23. Meanwhile, the market of elite real estate of London multidirectional moves in recent months. A very small price drop in the level of 0.1% recorded in the areas of Islington, city, Fringe and SOS the Bank, however, provided the annual price growth in these areas in the 1% range . However, prices in Kensington, knights bridge and Chelsea have experienced a much more intense decline over the last year. In General, the market of elite real estate of London is quite passive, experiencing the impact of raised Stamp duty and the uncertainty in connection with the political situation in the United Kingdom. It should be noted that the market of real estate of London is influenced by the policies of the two factors – firstly. Mayor elections in may and a referendum in June. Most likely, buyers of property in London will choose watchful waiting until the outcome of these two events.

The rental market of elite real estate of London also experienced a price fall in February by 0.1% , particularly the decline in prices noticeably in the upper levels of the market , where the rent starts from £1500 per week.

In General in the rental market of the UK property rents, influenced economic growth, reduced unemployment and low interest rates on loans, prices continue to rise, which grew by 2.6% in 2015.

® Maxim Savitsky G. 06.04.2016

 Apartment in the heart of London – Westminster

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