10:44 GMT02 April 2020
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    Predictions that property prices in London could drop 5.6 percent in 2017 following Britain's exit from the European Union is "Brexit scaremongering."

    The Center for Economics and Business Research (CEBR), has predicted that a period of uncertainty over Britain's exit from the European Union (EU) will cause property prices in London to fall.

    "Nervousness and uncertainty are starting to show," Kay Daniel Neufeld, economist at CEBR said, adding: "We expect to see house-price growth across the UK slowing considerably in the fourth quarter of 2016, a trend that is set to continue in 2017."

    However, David Galman estate agent and sales director at Galliard Homes in London, said linking property prices to Brexit was "scaremongering."

    "It's definitely Brexit scaremongering," David Galman told Sputnik.

    "Most people realize that their pensions and savings aren't worth as much as bricks and mortar," he added, predicting a stable but "calm" property market in London in the next two years.

    "Mid to low range house prices won't be affected. Prime central London property prices have already stabilized over the last 18 months after taking a dip following changes in stamp duty taking effect.

    "The US$1,837 per square foot [0.09 meters] property market has already responded to the market and is unlikely to drop any further," Mr. Galman told Sputnik.

    According to the CEBR, inflation, unemployment and a slowing business investment will negatively affect house prices amid slowing demand from international buyers following migration regulations and access to the single market. 

    The CEBR predicts that across the UK, any growth during 2016 will drop from 6.9 percent to 2.6 percent.

    Meanwhile, London estate agent David Galman suggests that the market will be "calmer" but it's won't drop due to Brexit. "While demand still outstrips supply, property prices won't drop dramatically."

    Related:

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    Tags:
    housing sector, luxury, houses, property, business, real estate, UK Referendum, Brexit, Theresa May, United Kingdom, London
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