How London property will continue to thrive in the face of Brexit

How London property will continue to thrive in the face of Brexit [Photo: iStock/altamira83]

When the Brexit vote hit the UK in June this year, there were predictions that it could mean the property market would be hit badly, with investors backing out of the sector, fewer buyers around and prices tumbling. 

However, this has yet to be seen in the months since the referendum result was confirmed in June, and now, even as the prime minister Theresa May has announced that she intends to trigger Article 50 by the end of March, the forecast for the market in the long term looks far better. 

According to JLL, the property consultancy, far from imploding after Britain leaves the European Union (EU), the British market, and in particular that in London, will remain a fantastic place to invest in property, retaining its safe haven status and potentially bringing buyers great returns on their investment for years to come. 

It said that even with Brexit a reality, buyers in some areas of London could manage to see properties they invest in now doubling in value by the end of the year 2030, which would mark a fantastic next 14 years for the capital's property market. 

In the report, which JLL produced using data from Oxford Economics, it was discovered that investors who are looking to make the most of the capital's fantastic property market should be turning their eye towards new areas, and away from the more traditional booming neighbourhoods across London. 

For example, JLL and Oxford Economics predict that the best areas for improvement in property value across the course of the coming 14 years will be Waltham Forest, Newham and Haringey. In these regions of the capital, property prices are likely to climb by 100 per cent, 94 per cent and 91 per cent respectively by the end of 2030. 

And it's not just these areas that are likely to see strong performance for investors in this time period either. According to the data, Lewisham, Hackney, Kensington and Chelsea, Greenwich and Westminster will all see their properties increasing in value during this time by more than 80 per cent. 

Nick Whitten, JLL residential research associate director, said the good news for those looking to invest in London is that these figures from Oxford Economics takes into account the hard Brexit possibility, which is now looking like the most likely outcome for the UK. 

"Within the confines of this scenario, Oxford Economics predicts the potential to double the value of a home in some parts of London by 2030. Particularly strong predicted areas of growth can be found to the east of the capital with Waltham Forest and Newham leading the way," he said. 

"The east of London is expected to be a significant driver in terms of the future economic growth of London driven by the rise of the likes of Silicon Roundabout in Old Street, the Queen Elizabeth Olympic Park and the new Crossrail east-west commuter railway."

Mr Whitten also went on to advise that those who are investing in properties now should look at this data and see property as a long-term investment option rather than one that can make them a quick return.