We now know that there will be a General Election in December with the certainty that a no deal Brexit option is off the table.
On the one hand this could be beneficial for the London property market as it removes uncertainty, and with a Boris Johnson led administration it is hoped it would honour past pledges to revisit the unpopular changes to Stamp Duty imposed in 2015.
A Jeremy Corbyn led Labour Government however is hanging its hat on a second referendum in a move to remain in the EU which is unlikely to sit well with constituencies that voted to leave. The concern for the London market if Labour gain power is what they may impose by way of direct and indirect tax rises and possibly other measures which could yet further alienate overseas buyers – Labour were set to introduce a ‘Mansion tax’ only a few years ago.
Therefore the situation is still one of uncertainty with Brexit delayed until the end of January 2019 (or before if a deal is achieved) and a looming General Election – the outcome of which won’t be known for a number of weeks. The most recent indices indicate that the average value of a property in Prime Central London in the 12 months leading up to this October is down 2% to £1.8M and that sales for the same period are down a whopping 8.3%.
In Greater London (not including PCL) prices during the same period rose by 2.3% which is an encouraging sign given the current political chaos. London’s Surveyors and Valuers don’t therefore predict any significant market recovery in the Capital until Brexit is done and dusted and a new administration has been formed and has made known its policies. It’s a case of watch this space yet again.