Giambrone Reviews Falling Property Prices of London Luxury Homes

 

Reports in today’s London press claim that both residential and commercial property prices face a huge slump following the Brexit vote, with luxury homes facing the biggest drop. Steep reductions, some as much as 15%, are being seen in sought after parts of London and many property deals that were almost at completion fell through when the result of the referendum became apparent.

However, for the investor prepared to play the long game the situation opens up a small window of opportunity that may never come again. Even with the latest changes to the UK property market in the shape of higher stamp duty, the changes to taxation for buy to let investments and additional charges for some overseas buyers, the falling London property prices may still provide interesting propositions for the right investors.

Latest figures today from agents Savills show that prices in central London’s most exclusive neighbourhoods are already 8 per cent down on their peaks in the third quarter of 2014.

Shopping centre developer Hammerson has enjoyed a strong first half, despite uncertainty in the property investment and lettings markets in the run-up to the EU referendum.

The company completed £12.9m of leasing deals in the first six months of the year, 19pc higher than a year earlier, while income from rentals rose just over 2pc.

But slowing growth in the value of its portfolio, particularly its UK retail parks, meant Hammerson 39's profits were more than 50pc lower than the previous year, at £162.5m compared to £326.1m.

London property prices are expected to fall by around five to ten per cent as a result of the Brexit vote, according to a report from analysts at Peel Hunt, as “uncertainty has replaced confidence” in the British real estate market.

Thousands of London homes have had their prices slashed since the Brexit vote a week ago amid warnings of a slump in the stunned housing market, the Standard reveals today.     

An Evening Standard analysis has found a huge spike in nervous home owners cutting their asking prices after the surprise result of the referendum last Friday morning unleashed what was described as “a perfect storm” by one leading investor.

The impact is expected to be most severe in the new luxury development along the river from Vauxhall to Docklands where falls of as much as 40 per cent are feared.

At Giambrone, we have a team of expert, dedicated solicitors who specialize in international issues from buying property abroad to handling an international divorces and division of foreign assets. We know the laws and we know how best to help you to achieve a positive outcome for your case: the language and cultural barriers often make it necessary to seek professional legal advice when buying and selling abroad.

If you would like to learn more about how we can help you with a wide variety of international property matters, you can arrange a discussion with our international property specialist, please contact us on +44 (0)207 183 9482 or email us at: clientservices@giambronelaw.com