Brexit has often been at the center of blame over the past several months for rough waters which have occurred in the UK housing market. It is being blamed for slow property sales, slowing demand, and other things which have been pace related. Now, a recent piece of research is claiming the bounce back in London property prices, post-Brexit, will quickly take place in the next few years. Research by Savills points out the London price model has seen decreases of almost 20% in the last four years, but will see the opposite effect taking place soon.

Property prices in the capital city have fallen at a rapid pace since the introduction of the new tax levy in 2014. According to Savills, the corrections which have taken place since the tax overhaul are now complete and London will likely see growth continue in property prices quickly after a two year pause in Brexit negotiations.

Savills forecasts property prices in the capital city to fall 5% this year, followed by 1% next year. Following these decreases, 2020 will see prices remain flat. The year 2021 is expected to see increase in growth of 6%, 2% in the year 2022, and 5% in 2023.

In regions outside London, property prices are expected to rise a total of 2.5% by the end of next year, followed by no change in the year 2020. The year 2021 will likely see 3.5% in property price growth, then 1% in 2022, and 3.5% in 2023.

Lucian Cook with Savills commented on the recovery of property price growth, saying: “Historically, any recovery in the prime housing markets has been sparked in central London, with a strong bounce in values, with double digit annual growth not unusual. The catalyst has often been a currency advantage, though prime central London residential property also has to look identifiably good value on a world stage.”