London’s falling population is hurting its real estate prices
The combination of the COVID-19 pandemic and Brexit have driven nearly 700,000 foreign-born residents to leave London over the last year, reported the Financial Times.
Of those departing, most have left the British capital for their home countries or smaller towns, resulting in a sharp fall in demand for all types of real estate in London.
However, the tide could soon turn for the city on the Thames as the UK’s quick vaccination rollout is likely to stem the recent exodus.
Once the threat of COVID-19 is behind us, London’s recently lowered real estate prices are expected to attract new investors, residents and companies to the city. Even after Brexit, the city remains one of the world's main financial centres, and while its pre-2020 real estate prices made it unaffordable for many households and companies, the recent fall in property prices will undoubtedly attract new buyers.
While the timing of this recovery remains the only unknown, experts agree that London's property prices will start recovering as the pandemic ends and the UK’s financial situation stabilises post-Brexit.