‘Phoney’ London property market isn’t immune to...

The London property market is facing a "bleak" second half of the year, the National Association of Property Buyers (NAPB) has warned.

The property association warns that those living in the capital will be hit by the delayed impact of rising interest rates.

Spokesman Jonathan Rolande said: "The second half of 2023 looks to be quite bleak for many estate agents who will be unable to build up the financial reserves needed to see them through what is likely to be an even more challenging winter market.

"In the City of London, rising interest rates have had a delayed effect on the prime real estate in and around the City as well as on the purchasing power of its employees.

"Many who were about to buy a home or invest in a buy to let saw this coming and did so a few months ago or at least agreed finance that now looks like a steal, even if just a year ago it would have brought tears to the eyes.”

Rolande described the current situation in London as a “phoney war.”

He said: “All of the difficulties are elsewhere, affecting other people. The bars and clubs are still full. Trains deliver the recently graduated into town ready to start their careers and of course, they must be housed. That’s why multi-let property is booming.

"On the horizon is the spectre of these rates and their effect on everybody, everywhere.

“The pain of high interest rates, inflation, and a huge tax burden is coming for the City. It cannot escape it.

“The summer of next year is going to look and feel very different. Developments will be mothballed, familiar shops gone and restaurants closing. What’s more, that’s exactly how we’re supposed to feel – ‘if it’s not hurting, it’s not working’. Difficult times lay ahead for the City."