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| PROPERTY |

Insider Knowledge

the post-brexit market diana alam, head of residential development sales, jll

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he question of how Brexit has impacted the London property market still lingers, and, in truth, the national and London market has responded to the referendum outcome in a more favourable way than most commentators expected. London’s market weaknesses pre-date the referendum and are largely borne out of changes to stamp duty, which impacted high-value properties. The immediate aftermath of Brexit was a turbulent time for the London residential property market and the longterm impacts are yet to be seen, but in the short term we expect relative price and rent stability. In prime London, the perceived threats to the financial services sector have exacerbated the negative impacts from higher stamp duty changes announced in 2014 and 2015. However, a devalued pound has opened up a large buying opportunity, notably from the dollarpegged currencies of the Middle East and Asia. Paradoxically, prime London may be the one housing market in the UK to see upward pressure on price as a result of the referendum decision. London developers have been forced to curb activity post-referendum in response to rising costs and slowing price growth. A greater exposure to high-density schemes that require bigger financial commitments

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London developers have been forced to curb activity post-referendum in response to rising costs also represents too great a risk for some. This will have a knock-on supply impact and ultimately place upward pressure on new-build prices. However, strong rental demand continues and this will support the conversion of some ‘for sale’ schemes to the burgeoning build-to-rent market, where institutional investment demand continues to strengthen despite the referendum outcome.

City & East Market Update When we look to east London, Q4 of 2016 remained stable in the Canary Wharf residential sales market. There is still a wide choice of available stock in the E14 area, ranging from properties that would suit first-time buyers to large penthouses. Most of the activity has been below the £600,000 bracket, but Q4 demonstrated some positive signs that this is increasing, with several sales agreed around the £900,000 to £1.25m price point. Meanwhile, in the City, the market showed encouraging signs of recovery with a strong finish to Q4 2016 and a flurry of exchanges following a tense few

weeks post-Brexit. The weakening sterling has brought an increase in overseas activity, which in turn has increased ‘UKbased’ interest. There is a good selection of both offplan and completed stock in the City, with prices ranging from £500,000 to the higherend apartments in excess of £2m. There is still uncertainty in this area, but with news of large City-based companies ‘un-freezing’ their hiring, we hope to see more investors taking advantage of strong rental demand, and increased levels of owner-occupiers returning to the market. East London is still an attractive option for buyers and east London locations are at present offering the best value for money, as well as strong growth stories. We think areas such as Hackney will benefit from Crossrail as commuters can travel into Liverpool Street and then quickly on to Canary Wharf or the West End. We therefore predict these areas will become more attractive to a wider group of working Londoners. For more information, please call 020 7337 4004 or email diana.alam@eu.jll.com

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City Magazine March 2017  

Welcome to the March edition of The City magazine, celebrating the dynamism of the area and bringing you the latest features, articles and r...

City Magazine March 2017  

Welcome to the March edition of The City magazine, celebrating the dynamism of the area and bringing you the latest features, articles and r...

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