Mar 11, 2019

Brexit and the UK property market

Before the decision was taken about the UK leaving the EU, all sides of the investment market faced a lot of uncertainties. Once the decision to leave was certain and with the due date is almost here, experts say the cloudy air has drifted away and the Breast could be good for the UK real estate market.

The studies and analysis are expecting a huge amount of investments coming from outside the UK due to the pound getting a lower value on the world market. Investors (especially Chinese and Indian) are coming with full power looking to use their higher purchase power and get great opportunities. This will bring a huge boom in the market. Besides, with all the Brexit issues resolved, the general uncertainty will end – and all the reasons that had stagnated the property market – are over.

This analysis is already being proofed as UK house prices dropped 0.6% in February – according to the Office for National Statistics (ONS). This study also indicated that the annual prices at which prices grow slowed down to 4.1%, the lowest since October 2013. So everything is going well for investors and buyers? Investments will come at a larger rate and the economy will be strong.

But what about to homeowners and sellers?

If they live in Birmingham, there is good news to them: the slowdown in property price was confirmed in every region of the UK, except for the West Midlands and Wales. What does this mean if you own a house in those areas? This means investments will continue to flow through the country and they still will have the chance to sell their proprieties at a good price.

So, with both buyers and sellers getting active again, we can expect a “normal” year after March. Also, with strong house price gains in the past couple of years, individual affordability has become increasingly stretched.

Many first time buyers are turning to borrow to get a slice of the prospects the UK property market holds with figures rising as high 30% in March, and 12% higher than the previous year, according to data released by the Council of Mortgage Lenders (CML).

More and more investors are looking the way of direct investments in well screened and pre-packaged developments and buy-to-let portfolios to take advantage of the growth potentials of the UK property market. So, if you are a homeowner, this is the time to find a good real estate agent and be calm about the future – investment in property can come with risks as well with the possibility of rewards, as always. But don’t worry about the world after Brexit, there aren’t going to be any dark times ahead.