Over a thousand days have passed since the EU referendum was held and, for some, this feels like a lifetime ago thanks to the drawn-out negotiation process. Almost three years on, the UK is still unable to reach a verdict on the final deal for leaving the EU.
Since June 2016, Brexit has influenced and impacted almost every single financial market and industry and property is no exception. Real estate is no exception and has, in fact, been a huge focal point in much of the Brexit speculation. Many onlooking have discussed what this may mean for house prices in both the short and long term, but despite many doom and gloom premonitions and predictions, the property market has actually been responding to the challenges which have been caused by Brexit.
Although the uncertainty which has come from Westminster has, naturally, caused some concern and hesitancy for both sellers and buyers, prices have actually risen in some parts of the country and property investment has continued.
House Prices Are Rising, But Hesitancy Remains
According to figures released by the Office for National Statistics, the house price on average in the UK in June 2016 was £214,000. In January 2019, this figure was £228,000, increasing substantially. Whilst the rate of this growth has slowed down in some areas, or even plateaued in others, it is important that the negative forecasts for the property market are taken with a pinch of salt.
As an asset, bricks and mortar has proven historically that it has the ability to withstand periods of both economic and political troubles. This is why it is so frequently favoured by investors who are looking for long-term gains, as well as those who seek immediate returns in rental yields.
Despite the hesitancy, there are plenty of reasons why investors should expect activity to return back to the property market once a deal for Brexit has been agreed.
Investors Are Still Attracted To Property
With house prices still defying a decade of highly turbulent events, investors are understandably keen on pursuing property opportunities in the current climate. A recent survey found that 64% of UK-based property investors had found that Brexit hadn’t impacted their investment decisions whatsoever. 7% also said that they had downsized their portfolios since the referendum, and 45% had actually invested more into properties over the past 2 years.
It is evident that scaremongering on the effects of Brexit is doing little to put off investors and this is, no doubt, partly down to the positivity of some projections in the future. Many trust solicitors Manchester based have noticed that historic data is playing a critical role in these predictions. These are always subject to change, but with an imbalance between supply and demand, the highly competitive nature of the UK property market has ensured there has been consistent returns for those investing.
Development and Construction Must Continue
There has been positive progress in the construction sector which has had an impact on the property market. This year, it was announced that there would be a £5.5 billion expansion in the Housing Infrastructure Fund in order to build more homes across the UK, with the government promising up to £3 billion worth of borrowing by housing associations across England to support around 30,000 new and affordable homes. The housing crisis is one of the most important domestic issues which the government needs to challenge, but the additional funding which ensures the building and construction of new homes is welcomed by many.
As we slowly move towards finalising Brexit, the UK property market is much more positive than some sources have led the public to believe. Although the historical data shows the resilience, long-term trends, such as Brexit, means that there are many reasons for the UK to optimistic about the financial year ahead. Manchester Solicitors have reported that over the past 5 years, real estate value has increased year on year by 11%, so it is likely this will increase further.