How political and economic changes impact London property prices

If there is one factor in the world of the property market that doesn’t stand still, it is the market. There is always some sort of ongoing political debate, economic shifts, fluctuations with the currency – factors impact the real estate landscape, influence prices and investor appeal.

Discerning Indian property investors eyeing opportunities in London may be wondering how these factors in reality impact the decision to invest overseas.

London property prices post-Brexit

When Brexit was first announced, several sources, including the government’s own forecast, predicted a decline in prices. Today, fast forward a few years and the reality is different. The UK house prices have grown by a solid 30% since the exit.

If you are wondering why, the answer to this is very simple: consistently strong demand, limited stock supply and London’s global appeal.

Additional instances include prime properties in Kensington and Mayfair that became 20-30% more affordable. Brexit has definitely proved to be a challenge for some; however, it has proved to be a golden opportunity for discerning Indian and overseas buyers.

Regional difference: London vs the rest of the UK

Brexit slowed things down in London for a while when compared to the rest of the United Kingdom. This was further pressured by affordability and tax reforms. Regions like the Midlands and the North East recorded higher growth. However, for overseas buyers, London continues to stand as a safe bet. This is because the capital opens doors not just to a property but also to one of the most connected cities in the world, a hub for finance, culture and education.

When Indian families invest in new homes for sale in London, they are considering factors such as rental yields, long-term legacy, a base for their children to study and reside in, the prestige of owning a London property and a foothold in a globally stable market.

A market that bounces back

Yes, certain bumps have been recorded within the market due to political shifts; this includes general elections, mini budgets and even global crises that slowed down the number of transactions at times. However, London’s property market has a stunning track record of bouncing back.

Recent data shows that the number of property transactions in London has increased significantly when compared to past years.

For Indian buyers, this confidence matters. If you are set to wire funds overseas, navigate remittance laws and plan investments for the long term, you’d want to know and ensure that the market you are setting foot in can weather storms and uncertainties.

British Pound’s advantage to global buyers

Another fascinating factor that impacts London property prices is the performance of the pound. After Brexit, the value of sterling declined and creating once in a once-in-a-decade opportunity for overseas investors. Discerning Indian property investors, those from the US and Asia, seized this opportunity.

Foreign investment within the UK real estate touched tens of billions of pounds, even in a period of political uncertainty. Now, at this stage, as the pound has recovered, early movers are sitting on gains from both property and currency appreciation.

Investors need to be abreast of legislative shifts

In recent years, the UK has gained more control over its housing laws and legislation. Latest reforms introduced over the past few years include stamp duty surcharges for additional homes and overseas buyers, changes to mortgage rates bringing in tax relief and restrictions on no-fault evictions.

These reforms make it crucial for investors to understand the fine print. This is where a reliable and good partner is needed. Benham and Reeves has spent over six decades assisting and guiding overseas clients, including thousands of Indian buyers through our India branches, navigate the London property market and its complexities with confidence.

Looking ahead to a stable market

You must be aware that global politics will always create headlines. There are US elections, EU trade talks and regional conflicts. However, London’s property market continues to stand strong against it all time and again.

This market does not get easily shaken. Instead, it adapts, recalibrates and continues to thrive with excellent outcomes. For savvy Indian buyers interested in buying London property, the takeaway from this article is simple: focus less on the short-term political noise and more on the long-term agendas.

Regardless of the instability in global headlines, London will continue to stand as one of the world’s most reliable, secure property investment hubs.

Benham and Reeves India: Your guide to investing in London

Whether you’d like to explore property investment in the UK, search for new homes for sale in London for your family or are looking for a detailed London property investment guide, we are here to help.

Benham and Reeves India has two offices: one in Mumbai and the other in Delhi. Our agents can assist you with Stamp Duty implications, connect you with London property mortgage specialists, negotiate excellent deals and manage paperwork- all on your behalf.

Reach out to us today for a private one-on-one consultation and let us together choose the best way to invest in the stable London market and make returns!