The Strategist

London elite housing prices stop falling after Johnson's party wins

12/30/2019 - 03:47

Housing prices in prestigious areas of London have finished the four-years fall. The number of deals increased after the Labor’s defeat in the election, but Brexit will continue to “cast a shadow” on the market.

by Treeemont
by Treeemont
The "long-suffering real estate agents" of London's elite Mayfair district can raise a glass in honor of the holiday, writes the Financial Times. In the last quarter of the year, local prices stopped falling for the first time in more than four years. At the end of 2019, prices did not change in other prestigious areas of central London, the newspaper notes with reference to data from the Savills real estate agency. 

The average annual drop in prices in prestigious areas of the British capital slowed down to 0.5% year-on-year, although last year it amounted to 3.2%. “This turned out to be a stronger year for the elite areas of London than we expected, given the level of political and economic uncertainty,” Head of Savills Real Estate Research Lucian Cook said to FT. He called the price stabilization the "turning point" for the city, which remains the most expensive in Europe in terms of housing. 

Buyers and sellers of real estate in elite areas of London reported a jump in the number of transactions after the Conservative party of Boris Johnson won the parliamentary elections, FT notes. Many of the richest British were scared of a possible increase in taxes in the event of the victory of Labor Jeremy Corbin, who put forward the left agenda. 

In December, the number of sold ho worth more than £ 5 million rose by a third year-on-year, Savills reports. For four years, the pace of transactions in the market was slow, and prices often plummeted. Housing prices in Chelsea and Kensington, for example, have fallen by 20.5% since 2014. In areas farther from the city center, elite real estate prices fell by 8.4%. 

However, despite Johnson’s victory in the election and the Prime Minister’s desire to close deals with the European Union as soon as possible, fears about Brexit continuing to “cast a shadow” on the market, Cook warns. He expects a “significant jump” in prices not earlier than 2021.