Tuesday, July 19, 2016

Land price is falling in the UK due to Brexit?

Last year, I wrote some entries about the situation of London estate some times. The population of London is increasing partially due to immigrants, and the accommodation cost is rapidly rising. The land cost in the last year was raised by ten percent from the previous year. Thus, landowners have been the winner in London.

My past entry: Seeking house in London (3)

My past entry: Three things annoying me in UK

My past entry: Challenging environment of housing in the UK and Japan

My past entry: Poor door in flats in London

However, the rule of the game will be changed.

The whole house prices in the UK is slipping down in this June, according to Rightmove, a property website. Average prices for homes fell by 0.9%, while 0.8% risen in the previous month.

The price itself is even higher by 4.5% than the same period in the previous year. So, it is not sure if this change is significant. If so, it is likely due to the influence of Brexit.

International Business Times: House prices slip after Brexit vote, says Rightmove

I do not think that many people have abandoned to buy or rent accommodation because of the Brexit vote so far. But if the UK government present the schedule of Brexit, many potential buyers in foreign countries have to reconsider owning a room in the UK. Businesspersons and students have to abandon to live in London as well.

Actually, London accommodation is deadly expensive. I feel too many people, including me, lived in London. However, it does not mean the population of London should decline. A city in which many people are willing to be together is going to prosper. Will London continue to be such a city in the future?

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