The effects of Brexit on the property market are not what you’d expect
With the Conservative leadership race hitting the headlines recently, and preparations for leaving the EU postponed to the 31st of October, it is safe to say that Brexit, much to the dismay of most, is still at the forefront of our minds. It is without a doubt that the country is split on this topic, 52/48% to be precise, and many believe that times will be tough when we eventually split, at least in the immediate future.
However, based on financial forecasts and buyers’ boredom surrounding the ‘Brextension’, the property market seems to beg to differ. House buyers are getting restless and won’t wait for the market to pick up indefinitely, particularly when there are budding opportunities in off-plan investment projects and alike.
Here are some of the effects that Brexit has had, and will have, on the property market. They’re probably not what you’d expect.
What does the future look like?
Politically, Brexit might all be up in the air, but in terms of the property market, things are looking positive. With the referendum happening in 2016, the property market seems to have emerged from a temporary reactionary slump, and many feel that the market is becoming to get ‘bored of Brexit’. Home buyers and people wanting to move are getting sick of having to wait for improvements to come about, and with the increasing surge in demand particularly around city centre living, projects cannot just be expected to come to a standstill.
The facts, figures and projects of the UK housing market post-Brexit also don’t seem to correlate with the hysteria and mystery surrounding leaving the EU. Not only have property prices increased by 4.5% since the referendum result in 2016, but rents in certain parts of the country have also even increased by up to 4.3%. Research forecasts have shown that the UK average house price growth will improve by 12.6% by 2022.
On the international front, the UK is garnering more attention from investors than ever. Not only has there been a 160% increase in inquiries from potential Chinese buyers, but many investors are seeking to capitalise on the opportunity for lower prices during the Brexit-reactionary period. With translations, virtual reality tours, high-quality CGI (computer generated images) and continually updating info-packages available alongside investment, property investment companies such as RW Invest stay in front of these demands, offering promising developments in areas such as Liverpool and Manchester.
Which areas are affected?
One of the areas most affected by the reaction to the referendum result is, as expected, the UK’s capital city. London’s housing market has already been stagnating, with its concentrated popularity resulting in extremely high house prices and slow burn financial results for investors.
One of the fears of Brexit is the mass exodus of companies that may look to uproot their business and move abroad, weakening the countries’ economy in the process. London, due to its stark pricing versus other areas in the country, is a city that has already experienced many of its residents relocating to other areas, just not outside of the UK. With the technology sector seen as one of the most important in the country going forward, growing 2.6 times faster than the overall economy, many young professionals and entrepreneurs are in need of cheaper overheads and running costs. Therefore, they look towards the North West of the country as cities such as Liverpool and Manchester as they are increasingly popular choices. While it’s true that the capital is starting to lose some of its large draw, it seems to be to other parts of the country, rather than abroad.
