First Time Buyer
Brexit vote ‘will not dampen prime London property market’
Investors are expected to flock to the security of tangible assets as turbulence is reported in the financial markets following the shock result.
Naomi Heaton, chief executive of London Central Portfolio (LCP), said: “It is now likely that property prices in Prime Central London will increase. While LCP had originally predicted that this would not occur until 2017, the signs are that the re-entry of investors into the market will be more rapid than originally expected. LCP has received a stream of enquiries from the early hours of this morning.”
Heaton said prime central London will continue to be viewed as an ‘aspirational, cultural, and educational centre’.
She added: “They [investors] are reassured by its rule of law and unequivocal title to property when it comes to ownership. All factors unaffected by the UK vote to leave and which investors worldwide will continue to find attractive, even as the UK embarks on the path of being an independent power outside the European bloc.
“It is also worth noting that the EU has played only a limited role in attracting international capital to the London property market, with only 12% of buyers coming from Europe according to LCP’s research. In the unlikely event of a wholesale withdrawal of European buyers, there will be very little net effect on the market.”
LCP is predicting there will be a surge of new buyers, who have been poised on the sidelines awaiting the results. The firm has already received enquiries from Asian and Middle Eastern investors since the early hours of this morning.