[vc_row][vc_column][vc_column_text]
Brexit hasn’t exactly caused the property market chaos which was predicted. Uncertainty resulting from the vote to leave the EU in June has created ripples in the property market on both a national and local level, but the market in 2016 has shown resilience in being able to withstand economic uncertainty.
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]So what has Brexit meant for the property market so far?
An immediate consequence was the drop in the value of the pound (the pound fell to a 31-year low against the dollar in October). This, coupled with low interest rates, has made the London market all the more appealing to overseas investors. Despite Brexit, overseas buyers continue to regard London as a safe bet for property investment.
The outcome of the referendum has, generally speaking, led some buyers and vendors to sit on their hands and delay making decisions, especially those who were more speculative to begin with. This has led to a slower sales market, which has contributed to an increase in the number of properties being listed for rent. This will help tenants as there is more choice in regards to rental accommodation.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Stamp duty rises
Most agents agree that it is not Brexit which had the biggest impact on the property market this year, but tax changes and, in particular, the extra 3% stamp duty surcharge on buy-to-let investments and second homes. This came into affect on April 1st, and the activity surrounding its introduction was perhaps inevitable.
In the first quarter of the year, there was an increase in sales enquiries and then a rush to get to the completion stage before the end of March. In the months following April, activity was more subdued. In recent months, however, the investor activity seems to be returning. Landlords are still tempted by high rental yields, capital appreciation and high rental demand.
Other measures being introduced by the government include a limit on tax relief for mortgage interest payments, while the scrapping of the 10% wear and tear allowance has also affected the decisions of landlords.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The local market
The last two stamp duty increases have affected properties at the high end of the market. This has led many to continue to rent to avoid the high tax bills. Some are also continuing to rent due to the uncertainty caused by Brexit.
Strong demand from overseas buyers is helping to keep property prices at pre-Brexit levels. Demand continues to outstrip supply, and this is helping to keep property prices steady.
Westminster and Pimlico offer relative value when compared with other parts of central London, such as Belgravia, which is only a short walk away. Buy-to-let investors and buyers alike should keep a close eye on Pimlico, as it remains more affordable than its neighbours, and yet there are many different types of properties on offer, from elegant Regency terraces to council estate flats.
Our predictions for 2017 are positive, and despite stamp duty increases, a drop in the value of the pound and Brexit, the property market has shown its metal in recent months.
If you are a landlord or a first-time landlord looking for peace of mind, contact us today.[/vc_column_text][/vc_column][/vc_row]
