From left: Savills UK director (development) Tim Whitmey, Savills UK Christopher J. Marriott , Savills Malaysia Christopher Boyd, Savills UK manager Philip Garmon Jones, DAC Beachcroft partners David Manifould and Glen Ruddy.

By Lee Yan Li

While Brexit affected investors’ sentiment and made a significant impact on the London property market, the increment of stamp duty since April was seen as another major factor exacerbating the softening sentiment of foreign investors.

According to Savills development team director Tim Whitmey, the additional 3% stamp duty for investors on second homes has been one of the main reasons affecting the Central London’s residential market.

He said while there were kneejerk reaction and fallouts following the result of the Brexit Referendum, investors have reacted differently to the news. Some opted to pull out from the market, while some saw it as a great opportunity to renegotiate the terms.

After a quiet summer in August, Whitmey said the firm was surprised that the level of activity from the second week of September has increased in all its offices in United Kingdom (UK).

“Since the referendum, the property prices has come off a little bit. If you ask the developers for discounts, you could probably can get 5% to 6% discount from the asking price pre-Brexit,” said Whitmey, adding that the weakening of British currency has also made property investment in London cheaper.

He and a team of Savills members had recently flown into Kuala Lumpur to discuss the state and opportunities of UK property market since the announcement of Brexit. They were joined by two solicitors from DAC Beachcroft.

He also disagreed that the current London property market has become a buyer’s market and the situation depends on the type and range of the product, as well as the location.

He said local buyers still have strong demands for cheaper products, approximately at £100,000 from Zone 3 onwards, while the pricing of residential properties at the top end of the market is also less affected. The mid-range market was by far the most affected.

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