Time to switch out of London properties?

[nmb]

Is it time to make use of the London property premium and switch to other parts of the UK where there is better value for money and greater spending power?

 

[Longterminvestor]

There are already signs of some investors switching out of London with the number now at a decade high. Not sure this will continue in the longer term though - Brexit led in the short term?

 

[nmb]

I wonder if London property owners will follow this new trend in the future because the massive London property premium will allow them to buy much larger properties outside of the capital.

 

[kchiggs]

I'd expect London prices to be more effected by brexit than the rest of the country. Since international buyers and most speculators bet on London rather than UK property.

So if your bullish on brexit this strategy makes sense

 

[diyhelp]

This really is a difficult one to forecast because skills, reputation and reach of the London stock market for example is something only European counterparts can dream of. A no deal would seem to be the worst outcome for everybody?

 

[kchiggs]

I agree it's very difficult esp as gov seems to change it mind or have no idea.

European companies trade on NYSE which has even larger reach. Australian companies list on the London stock exchange so eu membership isn't really needed for access there.

Trouble with the no deal is worst outcome is that each individual European rival might be better off (each win a little bit post brexit) even if the ecosystem as a whole is worse off.

A no deal might not be the worst outcome for eu (esp if regulatory alignment is kept to avoid hard border) probably very sweet deal for them. Threaten to end cta no dup bye bye may

 

[nmb]

The reality is that the EU has been trying to dilute the power of the London financial markets for many years now - pay back for the UK not adopting the Euro? While France and other EU members would like to increase the influence of their local financial servcies industries it is Germany which would benefit most from any demise in London markets - in my view.

 

[kchiggs]

That makes sense Frankfurt is getting a lot of winners. Could be payback for not adopting the euro or maybe opposing ever greater integration.

 

[diyhelp]

The flap over Brexit will not last forever and I think there is a lot more pain coming towards the EU - the Germans are already complaining that they have become a cash cow and the situation will get worse after the UK leaves. However, now is not the time to buy London property as I think we will see a sudden and sharp sell-off at some point.