Navigating Property Investment in a Post Brexit Britain

Since the EU referendum in June 2016, there have been understandable concerns over the impact this could have on the UK economy and property market for many years to come. There are many ways to navigate property investment successfully in a Post-Brexit Britain and Residential Estates has the experienced team to provide you with invaluable insight and guidance in these uncertain times. Below we touch on some key property market factors that all investors need to be conscious of.

The London Pre Brexit Bubble – London skews so many national averages when looking at UK property market figures so it is important to break it out separately. In terms of property prices, the values have always been much higher in London than in the rest of the UK. This price level is often down to foreign investment, especially in terms of the upper echelons of the property market. Since the Brexit vote last year there hasn’t been a significant drop in investment from overseas money and property prices remain at a stable high in the nation’s capital.

Consistent Capital Investment Despite Brexit Concerns – There were 28,000 purchases of land, homes and property in London between 2008 and 2015, with the majority of registrations from overseas investors. This level of investment is at the £100 billion mark and highlights how important overseas investment is to the UK in light of great uncertainty after the leave vote last year. The value of the pound dropped significantly in the immediate aftermath of the Brexit vote and is currently stumbling after a muddy and confusing election campaign that left us with a Hung Parliament. This continues to make overseas investors keep to snap up prime property while the pound stumbles, maintaining the London bubble effect.

With the expensive areas of London and large-scale property developments locked down in Central London, what does the rest of London and the UK have to offer to those individuals looking to invest in property?

Look Elsewhere for Property Investment – Foreign investors have the top end of the London housing market tied up and with locals competing to gain a foothold on the property ladder in the capital, there are more lucrative options for investors in other parts of the country. Residential Estates can help you find property investment opportunities in some of the greatest cities of the UK, outside of London. We can help you find the perfect property investment for you in Liverpool, Manchester, Leeds, Birmingham and other main cities that promise long term stable growth for buy to let investors.

Understand Infrastructure Projects Regardless of Brexit Outcome – For a few years there has been talk of large-scale infrastructure projects such as the High Speed Two (HS2) rail network. This new, fast network of rail will help to connect those regional areas such as Birmingham and Bristol with London. In the capital alone, there has been a substantial increase in property prices in the short period of time since the Crossrail route has been in place. This means that for those looking to invest in property there are some enticing opportunities outside of the capital that will benefit in the long-term from infrastructure projects. We believe these areas offer greater potential yields for return on investment due to the lower entry prices for properties in areas outside of the capital. There has also been significant progress in attempts to boost the economy in the North of England through the Northern Powerhouse initiative. Investing in property in Manchester, Leeds and Liverpool has never been more attractive to potential investors.

Keep an Eye on Inflation – Inflation continues to rise steadily, with the uncertain political situation we’re currently facing adding to the already choppy waters of a Post-Brexit result economy. In times of rising inflation it is vitally important that as you invest in property you really make the most of your budget in terms of materials and products. If you are attempting to invest in property and refurbish or renovate to a high-specification there are often ways in which you can keep costs down without losing that grand and luxurious feel you desire within your properties to maximise return.

Look to Student Housing – One area of property investment that remains buoyant despite Brexit concerns is student housing. Foreign investment remains popular within the student sector and there are still high numbers of foreign and high paying students that are willing to come to the UK to study, despite the relatively high costs of tuition fees. The quality and reputation of the universities in our country, whether we are inside or outside the EU, ensures that students from around the world continue to flock to our shores to be educated boosting an already popular investment sector.

Ask The Experts –Navigating the property market correctly to maximise return on investment is a full time commitment if you choose to do it alone. If you are looking for qualified advice to help you understand and respond to the wider economic and political picture as it unfolds post Brexit, you need to align with a company that can help take the guess work out of it for you.

For more information about the property investment advice and guidance we have to offer at Residential Estates, contact our office on 01244 343 355 or email sales@residential-estates.co.uk. We also have a live chat function on this page and a simple to use contact form where our friendly customer service team can return your call at your convenience.

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