Players in the London property market wait with expectation for the Scotland vote for independence. A positive vote would benefit the London property market in a significant way. London would become a choice destination if the Scots vote for independence and this could see an increase in the demand for homes.
The London property market, particularly affluent neighbourhoods like Highgate, has continued to be bearish with properties being at an all-time high within the capital. This has been attributed partly to the soaring prices that was seen in play in the previous year. This surge in price was as a result of a tax impose on foreign buyers as well as a stronger sterling pound.
The benefit to the London stock market due to yes vote in the Scottish referendum could be as a result of creation of employment opportunities created when financial institutions decide to move to London. The influx of a work force to London will result to a demand for homes there by pushing prices upwards. Banks like the Royal Bank and Lloyds Banking Group plan to move their shop to London in the event of an independent vote for Scotland.
While this is presently an assumption or rather a speculation, this could also be a good thing for the market. Owing to the tax slap to the foreign investors in the property market, there has been a decline due to their withdrawal. A yes vote would result to the filling of the resultant void by the companies and individuals moving out of Scotland.
There is an ever widening gap in prices between London and the rest of the country. The average price of properties in London is now at 470, 000 pounds compared to 185,000 pounds in the rest of the country and the prices of houses for sale in Highgate are even greater.
The high value of property market in London did much in the past year to lead to the recovery of the British housing market. The Scottish votes bring uncertainties in the UK property market as potential home movers deciding whether to undertake a long term financial commitment. The cloud of uncertainty would only be an addition to the present situation of undecidedness. As property prices are at an all-time high, there is a hold back attitude among the house movers in anticipation for prices to fall.
In the event of a Scottish pull out, the property market in London may take an upturn which is somewhat of a good thing. This is no cause for alarm, stay put and let the market forces decide.