A Reuters poll has revealed that Brexit is likely to result in a modest change in UK house prices, with London properties being impacted to a greater degree.
A no-deal Brexit would likely result in a 3 per cent decrease in London house prices over 6 months, while national property values would drop by 1 per cent. The survey was carried out between 13-20 February 2019.
Tony Williams of property consultancy Building Value said: “There will be a palpable shock to the UK economy in terms of GDP, inflation, job creation etc.
“This will spill over dramatically to the residential market, with London bearing the brunt given the international catchment of prospective buyers.”
Williams predicted that London property prices would fall 10% in the event of a no-deal Brexit.
However, a dramatic Brexit could see the value of Sterling fall 5-10 per cent, which would make investment more attractive to overseas buyers and offset some of the market problems.
Another poll said UK property prices would rise 1.5% in 2019 and 1.8% in 2020, a fall from earlier predictions. In London, property prices are predicted to fall 2.0% in 2019.