Looming Threats the London Property Market Should be Aware Of
The pandemic has altered operational systems worldwide, and the London property market has not been exempted. It has led to the spiking of property prices by almost 10%, based on the Office of National Statistics. Though January recorded a bustling state, there are potential threats associated with the London property market. Nebulous State of the Pandemic The globe has experienced a stumbled state due to the pandemic, and future projections are unknown. Stringent measures, such as lock-downs, have been put in place. People hope that there will be light at the end of the tunnel, especially with vaccines’ introduction. However, the disease has exhibited mutational trends, which might pose a risk to the London property market. Brexit London has been the undisputed conqueror of Finance in Europe for over three decades. Nonetheless, Brexit has posed change. It has resulted in the loss of numerous businesses in the city. Additionally, billions of dollars worth of stock have gone missing. This has resulted in a decline in the city’s financial services, which may negatively impact the sales demand. Mortgages There has been a high demand for mortgages in the past year. However, lenders have expressed reservations for continued lending, fearing a potential increase in default rate. This has led to massive clutching of deals. According to Rightmove, the current state requires four months for a contract to maneuver. Such delays are likely to inhibit adequate cash flow, and interest rates are playing low and steady. Stamp Duty
As per the government’s declaration, stamp duty is only viable when the purchase is more than €500,000 until 31st March. This has dramatically sidelined the mid-purchases, which are abundant in the sales market. Though there is pressure arising for a bargain, the government has showcased its dependency on pro-homeownership. London Emigration The pandemic has reshuffled the world’s demography, resulting in a decline in population in the city. This has never occurred for more than 30 years, and speculations exhibit about 300,000 people will leave London in 2021. Though the population will stand at about 8.7 people, the decline will reciprocate to a decrease in demand. However, there are hopes that maybe younger buyers will indulge in the purchases and recover from the current mess.