How should investors navigate property in a post-Brexit world?

 

Foreign investment has been a vital part of the UK economy for many years.

It is well documented that overseas money has caused property prices to spike in London, and the Brexit vote last year is yet to impact this hugely.

According to Land Registry Data, between 2008 and 2015 there were almost 28,000 purchases of homes, buildings and land in London, usually registered in tax havens.
The purchases amounted to at least £100 billion of property across London.

Since the vote to leave the EU in June 2016, and the subsequent fall in the Pound, foreign investment has become highly important to the UK economy.

Chinese investment for example, made up £805 million out of £841 million of property transactions in London’s West End in January of this year.

This was in addition to the £3.75 billion invested by Chinese investors over the previous 12 months.

With this backdrop, what does a post-Brexit property market have in store for others wanting to invest in the sector?
After more than 35 years in the architectural business I have picked up a number of investment trends, so whether you are trying to get a foot on the property ladder, or are looking to invest in property, here is a key thing to remember, especially in the post-Brexit economy.

While Middle Eastern and Asian investors are able to continue their large-scale investments in expensive areas of London, new investors or those trying to get onto the property ladder are priced out of this central London market.

The fall in the pound has meant that foreign investors have more money to spend in London, so locals looking to enter the property sector are priced out of the market.

Identify Key Infrastructure Projects

Infrastructure projects are key to regional growth in the economy, and this means that areas like Birmingham and Bristol may be good for investors, as High Speed Two (HS2) is planned.

As East London has seen, property prices along the Crossrail route have rocketed since the start of the project, with some even estimating average increases of £133,000 just between March 2016 and when the first trains are due to run.

In addition to HS2 providing a good base from which to enter the property market, the return on investment in the areas it will serve may also a lot better.

Ensure Your Costs Don’t Spiral As Inflation Bites

As inflation starts to creep up it’s likely that there will be an increase in costs of many materials and products, so making the most of your budget will become even more important.

There are lots of ways to achieve a luxurious design for your hme at an affordable price, and by taking just some of these tips you can ensure you achieve the most from your property investment in the post-Brexit economy.

For those who are already on the ladder, those who are in the process of buying, or those looking to invest in property, it can be a stressful process.

After 35 years of working in the architecture and interior design industry I have created a free report outlining my top tips before you make any home renovations.

You can download it now for free here.

No comments yet.

Leave a Reply

shares