Brexit increasingly affects the real estate market in the UK

A referendum about the future of Britain’s EU closer and more apparent becomes the influence of this event on pricing the real estate market of the United Kingdom.

The prices of apartments and houses in England and Wales fell by 0.4% in may 2016. This is the first such rapid decline since November 2011. Thus, the prices of houses and flats in England and Wales reached the price of £293599, and price growth for the year was 6.8% . However, if to exclude from calculations of London and the South of England, the growth of prices will amount to 5.4%.

However, the fall in the price of property in London was about 0.3%, equivalent to £1769 per month. In may were recorded the worst performance in terms of sales over the past five years. Of course, the London real estate market was influenced by the increase in Stamp duty to 5% for investors “buy to let”.

But there are areas not far from London, where prices have not followed the trend. For example, a powerful jump has made property prices in Slough, rising by 23.2% for the year, for example, a terrace house in London now costs £63000 pound higher than a year earlier. The potential of this area is growing due to the new construction of high-speed railway, Crossrail and employment growth in high-tech sector due to a number of companies of technological sector, O2, Nintendo, BlackBerry, and McAfee, is available here.

The drop in prices of real estate in England in may, largely explained by the leap which the market experienced in Q1 2016, after which a slight lull predictable.

The second factor is the upcoming vote for Brexit.

According to forecasts of the Chancellor of the exchequer of the UK George Osborne, in the event of a Brexit, property prices in Britain could fall by 10%. Of course, such news does not contribute to the increase in demand from buyers. Many buyers prefer to wait out the period of uncertainty associated with the forthcoming referendum.

Average price of property in London fell from £600,000 to £598421. London is so diverse and multifaceted that the prices in different areas moving in different ways. If in expensive areas of London prices have fallen by 0.5% or £4000, the cheap areas of London prices, in contrast, grew by 0.8% or £3000 per month.

® Alice Morgan. 07.06.2016 G.

Apartment in the heart of London – Westminster

Taxation legal. individuals in the UK

Tax on capital gains in the UK

What “Stamp duty”

Best offer

Land and types of ownership of property UK

The process of buying real estate

Why we recommend to buy new apartments and houses

Why Brits want to leave EU?

In the UK, reduced Stamp duty

Why buyers from Russia should not fear sanctions

More than 325 % over two years has earned our clients