EU verdict could boost home values in Newington Green
As the residents of Newington Green and the surrounding areas of North London head to the polls, politicians, business leaders and the media would have you believe the result of today’s EU referendum could make or break your property dreams.
While the result of today’s once-in-a-lifetime decision will do nothing to silence debate about Britain’s role in Europe, it will go a long way towards determining the health of the residential property market in Newington Green, Stoke Newington, Highbury, Islington and Hackney for the next six months and beyond.
No matter what your views are about Europe, the best-case scenario for the property market in Newington Green and the surrounding areas would be for Britain to remain in the EU.
Political and economic uncertainty often causes buyers, sellers and tenants to put their property plans on hold. Here at M&M Property, we are aware of potential buyers who are waiting for Britain’s status within the EU to become clear before deciding whether to purchase a home in walking distance to Highbury and Islington station.
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If Britain votes to remain in the EU, we predict the property market in and around Newington Green will spring back to life on the back of rising confidence in London.
M&M Property notes fewer buyer enquiries in the second quarter of 2016 that is similar to the run up to the 2015 General Election. That was due to the top end of the London property market going into hibernation because of the Labour Party’s plan to introduce a mansion tax on the owners of homes worth £2m.
But following the Conservative Party gaining an overall majority – which gave Prime Minister David Cameron the mandate to hold today’s referendum – buyers renewed their interest in property in every price range.
Rather than doubts about London’s status as a safe haven for property investment or whether homes in our area of North London will retain their desirability if Britain exits the EU, there is another factor behind the recent reduction in buyer activity.
The introduction of a 3% stamp duty surcharge on second homes led buy-to-let investors to speed up the completion of purchases before it came into force on 1 April.
What if Britain votes to leave the EU? London will certainly remain one of the world’s greatest cities and a leading financial centre, attracting both internal and external investment.
Some of the most desirable properties in this area, such as the tree-lined streets of Victorian terraces either side of Stoke Newington Church Street, were built long before the European Economic Community was formed in 1957, and they will remain in demand whether Britain stays in the EU or not.
The same goes for the 21st century contemporary homes in Highbury Gardens. Why? Because demand for quality homes for sale and rent in both Soke Newington and Highbury far outstrips their supply.
However, clouds of uncertainty will gather over the property market in London and beyond for the two years the Lisbon Treaty gives Britain to negotiate its exit from the EU.
On top of this, it is likely we will face another general election – creating yet more uncertainty in the property market.
The upside of a Brexit, however, is if predictions that the value of the pound will slump prove correct, property in Newington Green and beyond will be better value for overseas investors.
As a result, it is not unreasonable to forecast that if Britain does vote Brexit we could see families wanting a larger home in the catchment area of William Patten Primary School, which is rated Outstanding by Ofsted going head to head with overseas investors priced out of central London.
This competition could increase the value of property in Stoke Newington beyond the current average of £676,044.
To discover how much your home in Newington Green, Stoke Newington, Highbury, Islington, Hackney and the surrounding areas is worth, contact M&M Property today.