Following on from the Brexit referendum, Theresa May triggered Article 50 on the 29th March 2017, starting the process of withdrawing the UK from the European Union. While many things are still uncertain when it comes to what the results of this will mean, in many sectors of the UK, property investors remain undeterred by the prospect of a hard Brexit.
Property investment after the referendum
The British economy held fast after the referendum and in spite of many fears, the economy remained strong and unemployment levels remained comparatively stable. While hiring uncertainty still remains, in some areas wages saw a small increase in some employment sectors.
The average UK property price in January 2017 was £205,000, showing an increase of 0.2% rise for the month. There was a slight downturn experienced in the Central London region for house prices although other boroughs with lower priced properties still remain strong in sales and rental figures.
The drop in price seen in Central London could be a consequence of the changes in Stamp Duty that came into effect last year, rather than as a repercussion from the Brexit results.
Investment in property post Article 50
The low borrowing costs and reasonable mortgage rates are still available to property investors following the triggering of Article 50, meaning the anticipated 2% property rise forecast remains unchanged.
While leaving the European Union has cast a shadow of uncertainty across many of the financial sectors in the UK, the huge demand for housing will continue to be an advantage to property investors.
The UK continues to need a further 174,000 new homes each year and new building developments are not able to deliver such numbers, which keeps the demand well above the current supply.
Post Brexit Britain looks to be a continued worthwhile place for property investment and anyone looking to move into the property investment sector would benefit from property training courses to fully appreciate the risks and pitfalls.
The northern cities, such as Leeds and Manchester, where prices are still increasing above the average are offering higher returns for property investors at present. The Midlands and the North provide investors the opportunity to build a solid portfolio with a lower initial investment and higher average net yields.
The current situation shows that very little has changed since the process of Brexit began and the continued demand for housing looks to remain high, making it look as though we should see things continue in much the same manner after triggering Article 50.