Brexit Briefing: The Impact

on the Prime Market

The Impact on the Prime Market
The Impact on the Prime Market

18 July 2016, by Lucian Cook

How will the prime housing markets respond to the Brexit vote?

Summary

■ In the period of the past 18 months the prime housing markets across the UK have faced a number of headwinds, with high rates of stamp duty chief among them. The referendum vote to leave the EU is expected to result in added caution.

■ The diverse nature of the prime housing market means the effects will be uneven. The impact on each submarket depends on where it is in the cycle and the nature of demand which drives it.

 

■ In central London we have seen the fall in sterling stimulate new international demand, particularly in the new build market. However, we believe overseas buyers will want to be sure that property is identifiably good value both in terms of the sterling price and their own currency given a less hospitable UK tax environment.

■ More generally, early indications are that a relatively high proportion of sellers have already adjusted their price expectations, while there remains a seam of demand for good quality, well-priced stock.

■ Given the underlying uncertainty, we would expect the market to be dominated by needs based buyers in the short term, although there will also be some opportunists looking for value.

■ Committed sellers will need to be both realistic and flexible in their price expectations, responding to changes in market sentiment.

Articles from 'Brexit Briefing: The Impact on the Prime Market'

The Impact on the Prime Market

Caution among buyers will require realistic pricing

 
 

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Lucian Cook

Lucian Cook

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3837

 

Katy Warrick

Katy Warrick

Director
Residential Research

Savills Margaret Street

+44 (0) 207 016 3884

 

Kirsty Bennison

Kirsty Bennison

Associate
Residential Research

Savills Margaret Street

+44 (0) 207 016 3836

 

Frances Clacy

Frances Clacy

Associate
Residential Research

Savills Margaret Street

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Justin Marking

Justin Marking

Head of
Global Residential

Savills Margaret Street

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Jonathan Hewlett

Jonathan Hewlett

Head of London Region
Residential

+44 (0) 20 7824 9018