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International Interest and Future Projections: A look at the UK property market in the midst of Brexit

 

August 29, 2019 (Investorideas.com Newswire) After the referendum result in 2016, which divided the nation in terms of opinion and caused a lot of distress and worry among the media, many projections were made on how this might negatively affect Britain in a variety of ways. Surprisingly, however, the property market doesn't seem to have been affected as much as you might think. While reactionary slumps and drops in political hotspots such as London have been worrying, the market certainly doesn't seem to be a risky investment strategy going forward.

London's stagnating housing market, and the resulting general disinterest in investing there, might have been partially influenced by the country's political uncertainty, but that isn't the sole reason. Inflated house prices, combined with a generally lower standard of living in the capital - thanks to higher living costs etc. - are also to blame, and they aren't solely down to Brexit.

Here are some interesting pieces of information about the UK property market in the midst of Brexit.

Positive areas

London aside, it is seemingly evident that house prices and rental yields across the board are due to increase by 2022 (the capital included), and don't seem to be affected by leaving the EU in October. Here are some examples:

  • Liverpool is a vibrant and energetic city, brimming with culture and investment opportunity even in the face of political uncertainty. The Baltic Triangle area is a highlight, with property investment companies such as RW invest offering high-end, luxury developments intended for the young professionals and graduates it's no wonder that the area continues to attract tenants.
  • Manchester is another amazing example of a city that looks Brexit uncertainty in the face with a level of investment confidence. With the largest student population of any city in Europe, student accommodation investment is a good example of a secure choice for investors, as developments in prime areas are plentiful. Plus, the demand is almost guaranteed from aspiring students wanting to live in the booming city.

Across the two cities mentioned above, projected rental yields and capital appreciation figures seem more than healthy. By 2022, it is estimated that house price growth averages will increase by 16.5% in the North West (encompassing Liverpool and Manchester), and it is also projected that average rental growth will increase in both areas by 17.6%.

Overseas Investment

Perhaps making the most of the unstable pound sterling status, international interest in the UK property market has actually increased quite a bit amidst Brexit. While some within the country are anxious about investing their capital for fear of a bad deal, overseas investors retain a steady level of interest. Typically, investors are starting with London (and in some cases buying up expensive properties while they are cheaper), before looking northwards to Manchester and Edinburgh.

Deadline day

There is a number of people in the country, be it those wanting to move, sell or, buy or rent a home, that are waiting on bated breath to pull the trigger on their next step, as if something better will come along. Unfortunately, those waiting on the zeitgeist to turn in their favour, rather than taking the first step of their own accord, will probably find themselves left behind. The market can't simply be expected to wait.

As a matter of fact, in the month of August just gone, it has been reported that the market in London has rubber-banded on house prices to an extent, with sales supposedly reaching their highest point since 2015. Most of these anticipant buyers are evidently desperate to get their housing purchases done and dusted, with the paperwork signed before the dive into the wild blue yonder on Halloween night.

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