The Brexit effect does not stop: the latest news from the London real estate market
After months and months of instability, fear and disorientation, it was hoped that the situation in England could change. However, the Brexit effect does not seem to have a definite end, considering that, to date, the problems are multiple. In addition to a heavy influence on the London economy in general, obviously we have analyzed in detail our sector: the real estate sector.
Well, the impact is more than tangible on buying and selling activities. Compared to last year, transactions continue to signal moments of crisis, strongly emphasizing the state of political and social uncertainty that obviously flows into the economy.
Between March and May, the number of exchanges instead increased, exactly after the fateful March 31, the date on which the original deadline was set for the Brexit issue.
Confidence seemed to re-emerge, as the "problem" was about to be eradicated from the minds of investors. The increase in transactions in the month of May alone reached 10 percentage points more than in 2018.
But in June, the levels collapsed again, following Theresa May's resignation. New stalemate, new problems but similar results: blocked markets and zero investments.
But the new Prime Minister, Boris Johnson, who replaced the May 24 July, immediately worked to give a new impetus to the British economy. Impulse which, as a consequence, should accelerate and accentuate the recovery of real estate as well. The objective is to anticipate and foresee any critical situations, through the elimination of commercial frictions.
Meanwhile, the supply of the new properties remains increasingly contained, precisely because the potential sellers, due to the lack of effective stable demand, are held back by quietly entering the real estate market. Suffice it to say that the new PCL and POL quotations were discouraged to the point of falling to minus 21 percentage points compared to the last quarter of the current year.
The number of exchanges exceeding 10 million pounds, however, has increased, demonstrating that, once again, the luxury market continues to defend itself more than well. As is known, in fact, the luxory segment hardly lets itself be influenced and altered by market dynamics, even if they are so important, since the reference target appears to be stable at an economic level and always favorable to get involved, given the presence of huge financial potential.
What is expected of the UK economy in general is not easy to spot. The situation is much more convoluted than expected, and above all the boundaries of the phenomenon itself, both temporally and sectorally, do not seem to be clearly outlined. It is hoped that, over time, government policies will still be able to cushion these problems, to finally bring England back to its initial levels.
Well, the impact is more than tangible on buying and selling activities. Compared to last year, transactions continue to signal moments of crisis, strongly emphasizing the state of political and social uncertainty that obviously flows into the economy.
Between March and May, the number of exchanges instead increased, exactly after the fateful March 31, the date on which the original deadline was set for the Brexit issue.
Confidence seemed to re-emerge, as the "problem" was about to be eradicated from the minds of investors. The increase in transactions in the month of May alone reached 10 percentage points more than in 2018.
But in June, the levels collapsed again, following Theresa May's resignation. New stalemate, new problems but similar results: blocked markets and zero investments.
But the new Prime Minister, Boris Johnson, who replaced the May 24 July, immediately worked to give a new impetus to the British economy. Impulse which, as a consequence, should accelerate and accentuate the recovery of real estate as well. The objective is to anticipate and foresee any critical situations, through the elimination of commercial frictions.
Meanwhile, the supply of the new properties remains increasingly contained, precisely because the potential sellers, due to the lack of effective stable demand, are held back by quietly entering the real estate market. Suffice it to say that the new PCL and POL quotations were discouraged to the point of falling to minus 21 percentage points compared to the last quarter of the current year.
The number of exchanges exceeding 10 million pounds, however, has increased, demonstrating that, once again, the luxury market continues to defend itself more than well. As is known, in fact, the luxory segment hardly lets itself be influenced and altered by market dynamics, even if they are so important, since the reference target appears to be stable at an economic level and always favorable to get involved, given the presence of huge financial potential.
What is expected of the UK economy in general is not easy to spot. The situation is much more convoluted than expected, and above all the boundaries of the phenomenon itself, both temporally and sectorally, do not seem to be clearly outlined. It is hoped that, over time, government policies will still be able to cushion these problems, to finally bring England back to its initial levels.
