(Bloomberg) --
For London’s biggest homebuilder, the cost of Brexit is starting to become clear.
European buyers are shunning rental investments in the city, although demand from other parts of the world remains strong, according to Rob Perrins, chief executive officer of Berkeley Group (OTC:BKGFY) Holdings Plc.
“The real trend is a real reduction in European buyers,” Perrins said by telephone Wednesday. “It used to be about 4% to 5% for us and it has dropped down to 1%. Brexit effectively has meant that London is not seen as a place where Europeans want to invest at the moment.”
The company has seen an uptick in interest from Hong Kong, where China’s clampdown is encouraging more investors to look abroad, Perrins said.
Brexit’s potential impact on house prices was a contentious issue during the 2016 European referendum campaign. While the uncertainty unleashed by the vote has weighed on transaction volumes in the four years since, there’s little evidence that prices have suffered significantly.
The U.K. remains in a transition period following its departure from the EU in January. This expires at the end of the year, meaning the true impact of the vote is yet to become clear.
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