More Warnings that Brexit Will Cause Slowdown in U.K.’s Prime Housing Market

The global property consultancy Savills today became the third major organization in the past few days to warn that uncertainty surrounding a Brexit could trigger a slowdown in the U.K.’s property market. Jeremy Helsby, Savills’ group chief executive, said he expects housing market activity to be “subdued” in the run-up to the referendum in June, which will decide whether or not Britain stays in the European Union. More:‘Brexit’ Concerns Dampen Demand for London’s Luxury Homes At the same time, he added, higher stamp duty rates for expensive properties are still weighing on demand; the higher rates were introduced in December 2014. Savills, a leader in the luxury property market, saw its number of prime residential sales fall 1% last year as that market was “adversely affected” by stamp duty changes and uncertainty surrounding last year’s election. Beginning April 1, the government will slap an additional 3% stamp duty surcharge on buyers of second homes and rental properties, which is widely expected to further dampen demand. More:The Brexit Factor: What the Vote Means for Holiday Homes Last week, Knight Frank, another real estate consultancy, said that while U.K. voters won’t decide on whether Britain should leave the European Union until June 23, ongoing uncertainty is delaying investment decisions—including those in real estate—until after the referendum. BlackRock also cautioned that Brexit uncertainties will dampen the market. In a report published earlier this month, the world’s largest asset manager warned, “Investors in London’s commercial property market are understandably nervous about the Brexit vote.” “London has a lot to lose,” the report continued. “It accounts for 23% of European cross-border commercial property investment.” More:Currency Fluctuations: Friend or Foe?