What will happen when the UK leaves Brexit?
How will the UK property market react when the UK eventually leaves the EU? When people look at the current Brexit negotiations and the point which has been reached the conclusion is that astonishingly little progress has been made in many months. There are many who feel that the country is in chaos. This is an accurate assumption when one looks at the stalemate situation which is existing among politicians in Westminster. The situation of chaos does not extend to all parts of the UK economy. Even among all of this turmoil, there are many industries that are making positive advances. This is also the case with the property market which has remained resilient and strong among all the political and economic confusion. Although there had been many who have been uncertain about the condition of the property market, especially after the EU referendum, most of those fears were quickly dismissed. In recent times there has been a steady increase in house prices. In many parts of the country, there are new construction projects which are currently undertaken. There is a healthy interest not only from international investors but also from local buyers who continue to find UK properties attractive.
Escaping the Brexit ghost
Many UK citizens have allowed Brexit to cast a gloom over their existence but apparently, much of that anxiety was unfounded and there are many long-term developments which are taking place in the real estate market. There are also many other challenges facing the UK despite all of the uncertainty regarding Brexit. We are talking about other obstacles which could evolve into major situations in the near future. We should also take some time to reflect on what we can learn about the current housing prices. Just think back to all of those headlines which were seen in the media just after the EU referendum. There was no shortage of negative predictions. It is certainly true that there were some negative effects after the results had been made known such as stagnating housing prices in the capital. At the same time, there were advancements in other industries that have stimulated the economy.
Resilient property market
In the property market, there were positive results in the midst of the Brexit crisis. Areas in the north of England and the Midlands have seen significant growth in house prices over the last few years. This has resulted in a higher average as far as the national house prices are concerned. In the last three years since the EU vote, there have been substantial increases in property prices in several areas. There was a 16% increase in Birmingham as well as 15% increases in Leicester and Manchester. Some of the reasons which were given for increases in property prices was attributed to the inflow of investments into a variety of projects. This resulted in new house building efforts. Other benefits were the improvement of transport links and infrastructure.
The UK is still as strong a property market as ever, with tremendous long-term potential for serious Return on Investment. While others are dithering, you should be talking to us about the opportunities.
Relax about Brexit
It’s true. Brexit uncertainty, alongside recent government-imposed tax and lending rules, has caused a few tremors of concern among property investors, both nationally and globally. But, the hard truth remains – the UK is as good a place as ever for property investment.
London – still Europe’s no. 1
Britain’s international investor appeal remains buoyant and resilient. In fact, London continues to occupy the number 1 spot in Schroders’ latest Global Cities 30 index. It’s listed as the third best city worldwide for property investment, with Paris being the only other European city to reach the top 30.
Top for Foreign Direct Investment
2016, the year of the Brexit referendum, saw further endorsement of the UK’s reputation as the top European target for investors. This was the year that Britain hit a record high for foreign direct investment (FDI). That year, net flows leapt from £25.3billion to £145.6billion. Pretty impressive. Reuters recorded this as the highest annual jump since 2006, when comparable data was first compiled.
Considerable potential for capital growth and high yields
The message is clear. For you, as a property investor, there is still considerable potential for capital growth and high rental yields. In spite of Brexit uncertainty, the UK property market is still growing. It’s true that, in recent years, there has been a shift towards residential property, there are many commercial and industrial hot-spots in cities throughout the UK. These areas currently represent highly lucrative investment potential.