David Adams, managing director of luxury estate agent John Taylor, told the audience at today’s Great Housing Market Debate that if pound’s value fell against other currencies that would benefit London’s housing market.
The central London housing market would see a boost in overseas investment if the value of the pound plummeted due to a Brexit, it has been suggested.
David Adams, managing director of luxury estate agent John Taylor, told the audience at today’s Great Housing Market Debate that if pound’s value fell against other currencies that would benefit London’s housing market.
He said: “We saw a boom in central London property in 2011/2012 because the pound fell against the euro.
“In the past six weeks we have seen more buyers come back into London because the pound has fallen against the European currencies.
“So if the banks are to be believed that the pound will fall by 20% on Brexit this would massively invigorate the property industry which is being held back by stamp duty which is far too high.”
David Smith, economics editor at The Sunday Times, responded to Adams’ claim.
He said: “I think it’s confusing a short-term boost with a long-term negative impact of Brexit, particularly in the London market. The position of foreign nationals in the UK would be different.
“Brexit would harm the City which in turn would harm central London. That would more than outweigh the short-term boost.”
Foreign buyers have long since been attracted to prime central London property.
In October 2015 Land Registry figures indicated that investors have snapped up at least £100bn of property using overseas companies in the past six years.
