Richard Carr talks to us about the current property market in London

Some years ago, London property investment was perceived as very stable. For example, back in 1998, the average price of the property was £115,00. 20 years later in 2018, that residential price would be somewhere around 300% higher. But just because something is dependable, it doesn’t make it resistant to change.

In 2017 experts started warning about a UK housing market downturn in London within the coming year, which was demonstrated in the last half of the year and has continued during 2018. This is led to a lowered buyer demand and house prices flattened. Mortgage lender Halifax said that London housing prices are dropping at their quickest rate in nine years. Prices have dropped 3.2 %, which is actually the biggest decline since the financial crisis. But from property investors perspective Richard Carr explains that this is a good time to buy. So the question is, what has caused these changes?

UK leaving the EU
• Inflation rose to around 2.5 %.
• Brexit impacted the housing market the most
• Affordable housing has plummeted
• People are not selling
• Home-owners are buying abroad

Stamp Duty Land Tax
• Has become 2.3 % higher over the past 5 years.
• Is on a constant rise.
• London is a prime area for high stamp duty.
• Has made buy-to-let housing investment less attractive.

So, is it a good time to invest in property?
The key to succeeding in the housing market is staying ahead of the market as much as possible, it’s about knowing when and where to buy and to sell. There are some signs that point towards what could happen in 2019, but to go beyond, it takes a real expect to understand all the factors affecting the housing market right now. No matter your situation, whether it’s buying your first home, or buy-to-let, or even considering buy-to-leave properties, all these routes need experts to advise. See what Fortitudo has to offer today for your current situation, to identify the right opportunities for you. It is my opinion that when we exit the EU there will be a boom in property and the UK, this is because many large corporations have held back on their capital expenditure, we will become the Hong Kong of Europe which will lead to a flood of inward investment.