LREF2016: A leave vote will be a blow to confidence and a great pity for a great city, said Savills head of central London and international investment, Stephen Down.
Speaking on a panel on investment, Down said that while the EU referendum was not the only element affecting transaction levels in the capital over the past few months, a Brexit would create a lot more volatility. He said it would take one to two years for the market to return to a “new normal” in response to a leave vote.
“There is no escaping the fact that leaving the EU will create uncertainty, ” said Down. “That is not something we really want to deal with.”
Investment levels across central London and the UK as a whole have fallen between January and May this year, with transactions down by 9% in the City and 29% in the West End.
But Down, and much of the rest of the panel, which included Residential Land’s Bruce Ritchie, the Crown Estate’s Paul Clark, Schroders’ Chris Ludham and Simon Samuels from Brockton Capital, remained largely confident about the future of London as a destination for property investment.
“Over the last 10 years, London has received more capital inflow than any other centre around the global,” said Down, “and that is still there today.”
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