London house-buyers get lift from Brexit

AFP, LONDON: At 24, Londoner Kai Brader-Tan did not expect to become a property owner so soon in a city where rocketing prices in recent years have prevented many of his peers from getting onto the housing ladder.

But the Brexit vote may have given him a step up.

A graduate in Chinese and economics now working for a sportswear company, Brader-Tan has bought his first-ever flat in south London’s gentrifying Brixton area.

“It’s been a fortunate turn of events,” he told the news agency, explaining that a drop in the asking price from £550,000 to £500,000 finally helped clinch the deal.

The capital’s housing sector has been affected by a decline in investment from abroad which many experts have blamed on last year’s Brexit referendum.

London house prices may be more than double the national average, but are now growing more slowly than in any other region in the country—the first time in 10 years that this has happened.

One report last month even showed them falling.

A rise in inflation to three percent and the quarter-point increase in interest rates projected for November could bring down prices even more.

But there is little cause for celebration among developers, estate agents and investors.

The jitters about Brexit were palpable at the MIPIM UK property conference in London this month.

“The B-Word is the real concern,” said Paul Steward, a strategist at Barings investment management firm.

“The hike in rates is tiny and we think this inflation is a blip. We’re more worried about the downward economic trend overall,” he said.

London house-buyers get lift from Brexit

AFP, LONDON: At 24, Londoner Kai Brader-Tan did not expect to become a property owner so soon in a city where rocketing prices in recent years have prevented many of his peers from getting onto the housing ladder. But the Brexit vote may have given him a step up. A graduate in Chinese and economics now working for a sportswear company, Brader-Tan has bought his first-ever flat in south Londons gentrifying Brixton area. Its been a fortunate turn of events, he told the news agency, explaining that a drop in the asking price from 550,000 to 500,000 finally helped clinch the deal. The capitals housing sector has been affected by a decline in investment from abroad which many experts have blamed on last years Brexit referendum. London house prices may be more than double the national average, but are now growing more slowly than in any other region in the countrythe first time in 10 years that this has happened. One report last month even showed them falling. A rise in inflation to three percent and the quarter-point increase in interest rates projected for November could bring down prices even more. But there is little cause for celebration among developers, estate agents and investors. The jitters about Brexit were palpable at the MIPIM UK property conference in London this month. The B-Word is the real concern, said Paul Steward, a strategist at Barings investment management firm. The hike in rates is tiny and we think this inflation is a blip. Were more worried about the downward economic trend overall, he said.