The final decision on Brexit at the end of January and the accompanying election landslide for a new Conservative government has ushered in a period of relative calm and confidence, A period during which property prices in the capital are expected to flourish, suggested an analysis by Homes & Property on the 31st of January.
Thanks to the post-Brexit bounce, from about mid-December onwards estate agents and vendors enjoyed a 19% increase in the number of sales compared with the same period last year.
In addition to the increased volume, sale prices also increased during January. Prices rose by 2.1% - the biggest increase ever recorded in a January – taking the average price of a London home to £612,500.
The rising prices and an increased volume of sales take place against a background of relative stability following three years of the type of political and economic to which the markets are invariably averse. Recent years, therefore, have seen what analysts regard as a pent up demand – now giving way to a flurry of activity.
Although the strong Tory majority has released some of that pent up demand – especially from foreign investors – commentators also warn against a false dawn and urge cautious optimism for sellers and buyers alike. Brexit is by no means done yet, since the progress of trade talks may yet introduce further ups and downs in the market.
Riding the wave of current results – and the immediate upturn in activity – analysts nevertheless predict a 1% increase in prices across the capital this year, a 2.5% increase next year, and a potential leap to 4.5% in 2022.