Before the EU referendum back in 2016, should Britain vote to leave the EU, a multitude of media outlets were warning the public of a ‘post-Brexit apocalypse’ for the property market. Whilst suspecting that UK investment in the property market was set to dwindle rapidly, negativity circulated and left the public feeling uncertain about the future. Nonetheless, certain pockets of the economy have remained unhindered by Britain’s swift exit from the European Union, with the property market keeping its head well above water.
Property investment is not only staying afloat but prospering rapidly two years after the country was thrown into turmoil by the shock decision that shook the UK population. One of the most pertinent warnings was that property prices could stagnate due to a decrease in demand, with the ex-chancellors backing as he warned house prices could fall by over 18% should be the British public choose to exit the European Union. However, after much speculation we can begin to discover the real impact Brexit has had on the property market.
Data from the Office of National Statistics have reported an annual rise of 4% in total investment during the final quarter of 2017, disproving claims that the property market is affected by the referendum’s results. Up 1.1% on the previous quarter, a staggering £84.1 billion was injected into the economy’s construction, commercial and residential property sectors, proving that the UK remains stable and fantastic opportunities have been created for those considering investing in the UK’s burgeoning market.
The UK property market has been launched into significance as a result of a decrease in competition from other potential buyers who have lost trust in the market and withdrawn. After Brexit inflicted ambiguity, the market became somewhat tainted as some people began to become hesitant as first-time buyers and unexperienced investors. With this being said, those that are confident and willing to take advantage of the post Brexit economy can experience a country under less constraints and aim to secure the best financial investments.
One of the major influences from Brexit is the diminishing value of the pound which has added more value, prominence and prestige behind the economy’s currency. A fall in the UK’s financial worth has instigated international investors to pour billions of pounds into Britain’s thriving property business. Chinese foreign direct investment into the United Kingdom has more than doubled in one-year post-Brexit, from $9.2 billion in 2016 to $20.8 billion in 2017, despite uncertainty surrounding Britain’s pending exit those investors from overseas can purchase properties with the weak pound for better value investments.
Recovering from an unsteady start, the property market remains buoyant as capital growth across buy to let properties are expected to experience an optimistic future. Considered a deserving strategy for investment, the multitude of ambitious regeneration initiatives across the UK have led to predictions that house prices will rise in the forthcoming years. Depending on the area, the cost of property could significantly increase by 60-80%, depending on location, which will result in unparalleled opportunity for capital appreciation on UK investments.
The UK housing market appears to be holding its own and standing strong in the face of a turbulent climate as investor’s tendencies are to cling on to these thriving assets. RW Invest, property specialists based in Liverpool, state that rather than damage performance like many analysts had forecasted, the Brexit vote intensified activity and demonstrated resilience within the property market. As investment saturates the UK property market, it is important to embrace the new current climate as lucrative openings are cropping up all over the country, leaving the UK opening up to confident investors to taking advantage of Britain’s flourishing property scene.