Prime property in central London has lost its attractiveness among global investors due to the uncertainty over the country’s future relationship with the European Union.
Sales in central London have tanked 41 percent in the first quarter of this year to just 3406 sales compared with the previous year, data from real estate investment adviser London Central Portfolio showed Monday.
This is “in large part due to significant increases in taxation,” Naomi Heaton, CEO of London Central Portfolio, said in a statement Monday, but also due to a “wait-and-see attitude” from European investors as Brexit talks take place.
European investors, who were the second largest buyers just two years ago, accounted for 7 percent of the sales over the last 12 months.
“As the group most impacted by the outcome of the U.K.’s exit from the European Union, a bounce back amongst these investors will very much depend on the result of on-going negotiations,” Heaton said.
