London's property market will be the last to recover from Brexit, say estate agents

Helen Cahill
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House Prices Are Stagnant In London
London's housing market has slowed since the EU referendum (Source: Getty)

Estate agents are predicting that London's property market will be the last to recover from the Brexit vote.

According to haart estate agents, branches 100 miles from the capital had an average 75 per cent increase in activity month-on-month in September, compared to an average rise of just 37 per cent in outlets 45 miles from the capital.

And inside the M25, growth in activity was just 1.1 per cent during the same period.

Read more: This is how the third runway at Heathrow will hit London house prices

Central London house prices are now £518,997, up just 2.4 per cent annually, far lower than the 19 per cent annual growth that was seen in London's heyday.

In Chelsea, house prices fell by as much as 10 per cent year-on-year in October. Prime properties in central London have been suffering due to stamp duty rises as well as the Brexit vote.

Paul Smith, chief executive of haart, said: "The evidence from our branches is that areas around 100 miles from the capital are where the market is reviving, and this is spreading towards the South East and London - a complete reversal of the traditional 'London first' pattern we've grown used to.

Read more: House prices in this London borough fell by £3,000 a day last month

"This could be a historic realignment of our property market away from central London, or a purely post-Brexit 'flash in the pan' phenomenon. What is clear is that since June, Britain's property market has been turned on its head and London, for a change, is beginning to rely on the rest of the country for life-support."

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