Here’s an excellent article from the Independent. London property prices are headed south.
The thing is, there will be winners and losers. It’s a no-brainer that the top-end of the residential market has taken a dim view of Brexit. But some estate agents dealing with the top-end are trying to argue that for the very big deals price is not a limiting factor. Would you believe an estate agent?
Londoners and those invested in London’s residential property need to look to the hard evidence. The evidence is highlighting a weakening market, with demand influenced by the fears of highly paid financial services staff that their jobs are going to Frankfurt and Paris. Let’s face it the Brexit referendum and Theresa May‘s weak leadership will be the trigger for the next UK property crash. We’re a long way from Margaret Thatcher’s sale of council homes – the current Conservative Government is the exclusive preserve of the very wealthy.
But remember there are opportunities in falling markets too. Like the sub-prime crash in the US, expect the weakest and the most highly geared to suffer the most financial damage, returning the keys to greedy lenders. Of course, it’s not just weakening property prices. We need to factor in the growth of credit card borrowing. Whilst Theresa’s May’s government continues to dream, expect radical intervention from the Bank of England.
Should we feel sympathy for over-extended London property borrowers?