According to data released by HomeTrack, the price drops across the capital are "a result of tax changes impacting overseas and uncertainty surrounding Brexit." Recent tax changes have killed both overseas and domestic investor interest in London property. Combine this with increasing political turmoil and the ongoing Brexit nightmare and you have the current state of the capital's property market.
So is all this actually good news for prospective buyers?
Sara Ransom of Stacks Property Search says: “With the continued political uncertainty still holding its grip on the Prime Central London market, there is a general feeling amongst agents and buying agents alike that the pent-up demand will soon bubble over.
A lack of stock as vendors hold on to their properties until April, alongside buyer nervousness, has led to some excellent opportunities in the London market. We have recently agreed purchases of 20% and 22% below asking price, as clients seize an opportunity.
Buyers waiting for a Brexit decision may miss a trick. Having said this, understanding prices and the market could not be more important at the moment and whilst there are opportunities out there, there is very little new stock coming to the market. There is also a pent-up demand from more than two years of uncertainty which is likely to be released the minute any form of decision is made in Westminster - and irrespective of the outcome.
Whilst it is unlikely that prices will suddenly climb dramatically, it is likely that vendors post 29th March (unless there is a delay to Brexit) will ask some rather ambitious prices as they hope that holding off from selling will pay dividends. So if you've been thinking of buying, now could be the best moment for some time to come – before demand increases, and vendors start asking inflated prices.”
