Head of Research Nicola Almond considers how the triggering of Article 50 will affect the London property market

Yesterday Theresa May triggered Article 50, starting two years of negotiations which will lead to Britain’s exit from the European Union.

What will this mean for the London property market?

On balance the triggering of Brexit should act as a fillip to the market, especially in London, where confidence and property prices are particularly sensitive to the Brexit issue. Sales volumes fell after last year’s vote to leave the EU, although the stamp duty increases were arguably more to blame for this decline.

This may not last however, because whilst in the short term some of the uncertainty arising from last June’s referendum will be dissipated, in the longer term the protracted negotiations may not run smoothly and uncertainty about the impact of Brexit on the economy and jobs is likely to persist for some time.

On the positive side, worries that economic growth will be dampened by the Brexit process are expected to deter the Bank of England from raising interest rates despite rising inflation. Continuing low interest rates will help prevent any further deterioration in affordability, which is especially an issue in London. Also, as sterling is unlikely to recover to pre-Brexit levels, the continuing relative weakness of the pound will continue to attract overseas investors by more than offsetting increases in stamp duty.

The main issue for the London housing market remains however the structural imbalance between supply and demand, and this is unlikely to be resolved any time soon, despite the various measures outlined in February’s Housing White Paper. So although yesterday’s move to start the Brexit process will provide a welcome boost to confidence in the market, it does not bring us any nearer to resolving the challenge of delivering housing in sufficient numbers that the ordinary Londoner can afford to buy.

Last Saturday was a busy and rewarding day for Currell’s shared ownership team at the London Home Show. Hundreds of new leads were generated and our team gave invaluable advice and assistance to prospective purchasers.

4,400 aspiring London homeowners passed through the doors of the QEII Conference Centre in Westminster.  The London Home Show is organised by Share to Buy, which is the Mayor of London’s route to affordable home ownership within the capital.

The Currell team was joined by Eric Cheatle, a financial advisor for TMP, The Mortgage People who helped advise on eligibility and affordability.

The Big House Gala fundraiser held on the evening of March 6th at Wringer and Mangle in Dalston, was a great success, surpassing all expectations. The event raised well over £40,000 which will help the charity to support care leavers who are at risk of social exclusion, to manage the transition to living independently.

Photograph by Dylan Nolte

Photograph by Dylan Nolte

Currell was the main sponsor of this event, alongside Enfield Construction, Four Communications, Joelson Law and Wringer and Mangle.

Maggie Norris, Artistic Director and Chief Executive, gave an inspirational talk on the work of the charity, which offers its members a programme of  life skill and employment skills sessions plus drama workshops  that culminate in  an original theatre show and four weeks of performances. It also provides access to opportunities, holistic support and long term mentoring.

This was followed by impressive testimonials from several young people who are currently benefitting from the charity  and from others who have participated in the programme and stayed on as mentors and as part of the growing community that The Big House fosters.

Guest speakers included Sir Lenny Henry and Game of Thrones actor and Patron of the charity Ed Skrein, (photographed below with Chris Currell CEO). Ed spoke about his involvement with the charity as a mentor and the invaluable work carried out by the Big House.

Photograph by Dylan Nolte

If you want to find out more about the work of the Big House visit http://thebighouse.uk.com/