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17

July

2017

The Future of Property Investment in a Post Brexit Britain

Since the Brexit 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.

The London Pre-Brexit Bubble

London skews so many national averages when looking at UK property market figures so it is important to assess its value separately. In terms of property prices, the values have always been much higher in London than in the rest of the UK.

This price anomaly can be largely attributed 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 maintain their interest in prime property while the pound stumbles, artificially maintaining the London bubble effect.

With high-end properties and large-scale property developments locked down in Central London, many savvy investors are turning their attention to regions for yield opportunities and attractive returns.

Crossrail to Boost Regional Investment

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.

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.