Date Published 13 June 2014
What Does This Mean For The London Property Markets?
The geo-political landscape around the World is re-shaping itself nearly as fast as Mr Putin's annexation of Crimea!
Undoubtedly the ‘West' retains one unofficial status and that is of Democracy and relatively stable governance. With this comes a good deal of security in terms of finance and indeed personal welfare.
There has been considerable capital flight to such markets and particularly the UK over the last couple of years. This money may have come from Europe, Middle East, Asia (EMEA) – wherever it has come from it has meant there has been a large influx of investment into the top end of the UK residential markets.
Does an anti-vote towards the ‘European Project' mean this money will suddenly leave the country? This answer to this is surely: No.
There are perhaps other factors at force that will probably influence the market over time. These include:
• The possibility of a Mansion Tax, despite the Lib Dems now favouring additional Council Tax Bands instead
• Interest Rates may well now will creep up this year
• The strength of the Pound
• The possibility of Scottish Independence
Some might say that Britain standing on the edge of Europe and looking in is rather better placed than being within the Euro Zone and part of an unwieldy one-size-fits-all machine. Others might say we need to be attached to our most important markets.
Whatever decision is reached, it would seem neither choice is going to be the main driver for continuing growth in the London property markets. Like everything else, the Global Economy needs an epicentre and seemingly this is the UK – at least for now!