No market likes uncertainty, and UK real estate is certainly no exception. Brokers are concerned that speculation over Britain’s continued membership in the 28-member European Union, due for public vote by the end of 2017, could have wide-ranging effects on the UK property market. Reuters spoke with industry insiders, who expect uncertainty in the run-up to the EU referendum to lead to a downturn in price growth across all housing sectors, despite the markets relative resilience.
Savills, which forecasts the average house price of prime property in the capital will fall 2 percent this year, said central London, where foreign investors tend to buy homes and many international firms are based, could be most hit due to the uncertainty ahead of the vote. "I think that contributes to a slow prime central London market where obviously you have the biggest level of international demand," Head of Residential Research Lucian Cook told Reuters. London-focused housebuilder Berkeley said last week that the capital would see its status as a world city diminished were it to leave the EU, and would need fewer new homes built as a result.
With no date set for the referendum vote, brokers, buyers and builders will just have to wait-and-see what comes of the speculation. [Reuters]View full listing (pictured top)