The CEO of Haart believes London’s property market is still suffering from Brexit blues after research showed a dip in prices since July 2016.
The estate agency’s latest report found average price in the capital had fallen 3.4% in a month to £524,645 in August.
That was almost twice the national drop, with UK prices 1.9% down on the month in August, sitting at an average of £228,831.
Paul said: “This month sees a property market that is still suffering from the Brexit blues. House prices are down, but are not out – as we near the bottom of the post-Brexit dip, with interest rate falls likely to help pick things back up again in the second half of the year.
“It is positive to see that transactions are still up for the second month in a row, so there is still plenty of activity in the market.
“We are also seeing a more positive picture for first-time-buyers, as mortgage rates decrease, along with deposit and purchase prices, making it a good time to buy.”
But he said the rise in Stamp Duty in 2016 had a “more profound effect” on the market than Brexit, with buy-to-let landlords venturing out of the capital to places where they are likely to see more lucrative returns.
He said: “However, the continued lack of supply will always hold the market up in our resilient capital, and this is unlikely to see a too damaging effect long-term.
“The pound is continuing to recover week on week and broader business confidence data from YouGov shows the largest month on month jump in confidence in over 3 years – it’s too soon to say we’re ‘over’ Brexit, but the fog of uncertainty is beginning to clear.
“This boost in confidence should be reflected in property activity in the coming months as we return to relative normality. With the summer lull coming to an end, expect to see the market moving onwards and upwards in the autumn.”
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