A recent study by Haart Estate Agency suggests that the houses in areas surrounding London are growing in price faster than the city itself for once.
The study has seen estate agents suggesting that Brexit may be to blame for the falling house prices in central London, but no one expected the surrounding areas to start to increase in price.
Haart Estate Agency is referring to this phenomenon as the “Brexit reverse ripple effect” and state that it is most likely due to people being put off from buying property in the capital for one of the first times in many years due to the uncertainly of June’s referendum result.
Interestingly, the study also showed that the areas that are seeing the biggest surge in house sales and purchases are located approximately 100 miles from the centre of London, meaning that it’s not even the outer boroughs that are seeing a surge, as is usually the case when London’s property market changes.
The study also suggest that this could be a monumental change in Britain’s housing market as the country is used to a “London first” attitude, but on the other hand, it may be that this is just a momentary reaction to the results of the Brexit vote and prices will return to normal within a few months – it’s too soon to speculate.
Whatever the cause, it will surely affect home sellers and buyers, with buyers finally able to purchase London property at a lower price, and sellers on the outskirts of the capital able to sell their properties at a higher price.
If your property is in the South East, it seems you will see the most benefit as house prices south of London are rising at the fastest percentage compared to their city centre neighbours.
For those worried about their dropping house prices in the city, remember that property in the capital is always desirable and every time the country has seen a dip in recent years, it has always balanced itself out again soon enough.
If you’re still worried about buying or selling property in London, give Capital Conveyancing a call on 0207 4065880 and we’ll talk you through any worries you may have.
Ellie manages the content for the Capital Conveyancing site, finding ways to help Londoners looking for information and guidance around the conveyancing process, and presenting it in a clear way. Ellie loves writing about all things London, as her research leads her to discover new areas and history.