Rising mortgage rates, driven by geopolitical events, are stalling the market and causing transaction chains to collapse.
An increasingly 'hostile to capital' policy environment (high stamp duty, second home taxes, rent reforms) is deterring both domestic and international investment.
UK property, outside of London, has failed to deliver inflation-adjusted returns over the past 10-20 years, challenging its status as a reliable asset class.
Political uncertainty and the prospect of a more left-leaning government are creating significant fear among property owners and investors.
Opportunities Identified
Significant discounts of 30-50% are reportedly available on some prime central London properties for buyers with capital.
The ultra-prime 'trophy asset' market in London remains robust, with record prices being paid for best-in-class properties.
A potential long-term contrarian play exists for investors willing to bet on a future political shift to a more pro-capital government in 2029.