Brexit Limbo Having a ‘Suffocating Affect’ on Prime Central London Real Estate
As the U.K. prepares for its Brexit drama to drag on for another few weeks, the continued uncertainty is weighing on prime central London’s real estate market.
Average prices of existing homes in prime central London stood at £1.8 million (US$2.37 million) in February, a fall of 6.2% compared to January and 12.7% over the quarter.
Meanwhile, new-build prices may stand higher but they’re dropping further. The average price for a newly constructed home was £2.26 million in February—more than twice the price of existing housing stock—the result of the completion of some ultra-high end developments, the U.K. real estate investment firm said.
But that average price was a drop of 25.6% from January and 29.6% over the quarter.
Transactions have dropped across prime central London, too. Sales of existing homes continue to “limp along,” with a total of 3,405 transactions over the year to February, a fall of 16.5% compared to the same time last year and equating to fewer than 66 sales per week.
New builds again fared worse, with sales standing at just 604 annually, a drop of 46.1% compared to February 2018.