Property prices in London have been in an undeniable bubble for quite some time, with growth rates significantly higher than in the rest of the United Kingdom.
Brexit was expected to reduce housing prices in the capital and make property more accessible and/or destroy people's property-based wealth - depending on your perspective. Technically it did reduce housing prices because the Pound's crash made everything in the U.K cheaper. But did it really make property more accessible?
Well, that depends on what currency you use. If it’s Pounds? No. Dollars, Euros or Yen? Yes.
The Pound's crash has made British real-estate extremely attractive for foreign investors who hold a currency now much more valuable relative to the pound. As a result, international demand for British property has surged, not only in London but around the United Kingdom.
What does this mean?
This, like most things concerning Brexit, depends on your perspective. For property owners and potential sellers, this is excellent news; higher home prices may even end up defraying some of the wealth destroyed by the Pound's significant declines.
However, for those hoping to buy homes, higher prices are obviously bad news. But to be honest, someone who was able to purchase a home before Brexit is probably not suddenly unable to purchase one because prices rose 1 or 2%. Overall, the impact of this development is relatively small in the grand scheme of things.
