The UK housing market is having a bumpy start for the new year. But what does that mean for London millennials who had previously believed a foot on the property ladder to be way out of step?
Following Theresa May’s defeat of her proposed Brexit deal, the London housing market hangs in uncertainty, with the rest of the UK right behind it. A deal to satisfy buyers’ concerns is set to remain an abstract concept, unlikely to be rectified until 29th March when the UK is set to leave the EU.
Prices in the capital have been slowly declining since topping out in July 2017, according to Homes and Property, “but without yet showing any sign of a full-scale collapse”. For young people in the capital, this bleak period could provide a crucial window of affordability, especially since Philip Hammond announced the extension of the Help to Buy scheme until 2023.
The popular policy means homeowners purchasing a new build in London can get an extra 40% loan from the government which is free for five years. Young buyers may be able to take advantage of falling net migration from the EU in one of the most internationally-reliant property markets in the world.
Richard Snook, senior economist at PwC, said: “London is one of the most internationally dependent parts of the UK, due to economic integration with Europe and the high share of foreign citizens in the labour market; therefore we predicted in our July 2018 market projections that London house prices would underperform any other region.”