Striking a Balance

11 July 2016, by Kirsty Bennison

The outlook for Ealing needs to be considered in the context of the wider prime London market

 

The sales market

The prime housing markets of London have had to contend with a number of headwinds over the last 18 months, including substantial changes to stamp duty which have shaped the market over this period.

The referendum vote to leave the EU is expected to result in added caution in the prime residential property markets, particularly given the uncertainty regarding the strength of the underlying economy, the prospects for the financial and business services sector and, in some cases, the cost and availability of mortgage debt.

The true strength of market demand is only likely to become clear over a period of months, though early indications are that a seam of demand for good quality, well priced stock remains.

Committed sellers will nonetheless need to be both realistic and flexible in their price expectations, responding to market sentiment both over the summer and into the autumn.

The rental market

The outcome of the EU referendum, and the uncertain impact which it has upon the UK economy, means the strength of rental demand will be difficult to gauge over the summer and autumn period.

While we expect a slower sales market to increase demand from those reluctant to commit to a purchase, there is also the prospect of an increase in accidental landlords bringing more rental stock to the market.

This will mean landlords need to be competitive in asking rent and flexible on the terms they offer as well as ensuring that the property is presented in good condition.

placeholder

Subscribe to Savills research

 

Would you like to be notified via email about new research?