London Real Estate Losing Steam

The London real estate market is losing steam with sales struggling to complete.

Tax changes, Brexit uncertainty, higher house prices and difficulties in getting a mortgage approved are making it increasingly hard for people to buy homes in the U.K. capital.



Real estate companies have admitted that a slowdown in sales has affected their profits. London-focused chain Foxtons reported a loss of £2.5 million for the first half of the year, compared to a profit of £3.8 million a year earlier. Savills also said Thursday that residential transactions fell 7 percent in London during the first half of 2018, denting its profits. These were down by 18 percent in the first half of 2018, from a year ago.

Data from Reapit Group, a real estate software company, showed that, on average, houses in the Greater London region were withdrawn from sale after 5.7 months. Almost two-thirds of London properties for sale that departed the market in 2017 were withdrawn, not sold.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza