Brexit takes wrecking ball to British residential market
As Britain’s deadline to leave the European Union approaches, property prices have slowed or dropped, especially in London, with sector analysts warning of worse to come if Britain crashes out of the bloc without a deal.
“The market is at a standstill,” said Beatrice Caboche, director at real estate company Barnes UK. Average property sales prices rose just 0.7 per cent in July, their slowest increase in nearly seven years. Analysts blame a process set in motion with a 2016 Brexit referendum.
“Over the past three years, there has been a general slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England,” said Yael Selfin, chief economist at KPMG UK.
Many investors expect the market to weaken further and don’t want to overpay for property that will be worth less if, for example, Britain leaves the EU without a negotiated deal.