brexit uk properties

There is a lot of anticipation on both sides of the fence when it comes to buying UK property after Brexit. Some sectors say that Brexit created a perfect buying opportunity while there are also those who advise investors to wait until everything settles down. Depending on which side you are on, the decision to buy will ultimately be determined how the market reacts several months post-Brexit.Nevertheless, should you really wait for several months or should you make the determination now based on expert analysis? Bear in mind that if Brexit proves to be the right decision for the UK, property prices could shoot up faster than you can blink an eye. On the other hand, if it proves to be disastrous for the UK, the nation’s property market could also crash. This is why before making a decision you need to make a careful analysis of the situation.

What is Brexit?

will brexit affect uk housing market?

Brexit has been the talk of the town, particularly in the investment world, since mid-2016. For the benefit of those who do not know yet, Brexit is a term coined referring to the exit of Britain from the European Union, hence, the word Br-exit. The move was the result of the historic referendum which took place on June 23, 2016. In that poll, almost everyone of voting age was asked whether they preferred the UK to stay with the European Union or leave. The result, while favoring leave proponents, showed just how divided the nation was with polls showing 51.9%favoring leaving the Union over 48.1% who wish to remain. The turnout was 71.8%or around 30 million Britons casting their votes. While most of England and Wales chose to leave EU, Scotland and Northern Ireland voted to stay.

Brexit has been the talk of the town, particularly in the investment world, since mid-2016. For the benefit of those who do not know yet, Brexit is a term coined referring to the exit of Britain from the European Union, hence, the word Br-exit. The move was the result of the historic referendum which took place on June 23, 2016. In that poll, almost everyone of voting age was asked whether they preferred the UK to stay with the European Union or leave. The result, while favoring leave proponents, showed just how divided the nation was with polls showing 51.9%favoring leaving the Union over 48.1% who wish to remain. The turnout was 71.8%or around 30 million Britons casting their votes. While most of England and Wales chose to leave EU, Scotland and Northern Ireland voted to stay.

What does it mean for investors?

Just like any event that could alter the course of history, investors are carefully following the developments of Brexit. While the UK is slated to fully leave the EU on March 29 of 2019 at around 11pm, the pullout is already gradually happening.Since the UK is one of the European Union’s biggest members, the effect of the pullout could send ripples all over the globe. Why? Simply because the UK has a business, and in some cases political, interests in almost every part of the world.According to experts, investors from other EU members may have much to lose in terms of exports and other economic aspects. As to whether this could affect those investors’ interests in terms of owning property in the UK remains to be seen. Other investors, on the other hand, see Brexit as the beginning of instability on both political and economic fronts.

The question: To buy or not to buy?

Why should Brexit concern you? If you are a property investor, then you should know that Brexit is causing jitters in the property market. Data from UK government bodies show prices are starting to fall and sales have started to take too long to complete compared to how they were five years ago. If you already own property in the United Kingdom, you may already feel the downward pressure on property prices in London. UK surveyors are almost one in blaming Brexit for this circumstance. To make matters worse, the lack of a Brexit deal with the EU according to surveyors can spell disaster for the real property market. Nevertheless,if you are a property investor looking to buy properties in the UK, the current situation might present a good opportunity. How so?

What are the hidden opportunities in Brexit?

While UK surveyors are getting jumpy over property prices, signs are beginning to show an imminent improvement in prices. Northern Ireland, the West Midlands and Scotland are posting a strong growth in the property market with house prices rising despite Brexit uncertainties. A rise in property prices in those areas only shows that investors are beginning to see opportunities amidst price fears. Property owners, on the other hand, should hold on to their investments as much as possible. They have much to lose if they sell today with prices tumbling down. It is a different story, however, for those who are looking to buy properties in the UK. Many property analysts say that there is a huge possibility that property prices will soar after March of 2019. Those who wish to buy should invest now while the price is low.

What are things to consider when investing in a UK property today?

Check whether the property you wish to acquire is near big infrastructure projects. Bear in mind that even in unstable or weak property markets, there is still an opportunity for growth in areas where major infrastructure projects are ongoing. In fact, both capital gains and rental yield can improve in such areas. Try checking the properties along Crossrail line, HS2, and Night Tube.Try also to keep an eye for changes in the high street. For instance, check whether shops are closing down permanently or are new shops taking over the old? If it is the latter, then the possibility of prices rising in that area is likely. Investors should also get hold of good real estate agents who can provide honest and solid advice.

There are a lot of millionaires today who are products of chaotic circumstances. This does not mean you will also become a millionaire if you invest in a UK property today.However, you must always remember that the biggest opportunities are the ones hidden behind a façade of uncertainties. For all you know, the property you buy today can be worth several million tomorrow. The question is, are you willing to invest thousands which can be lost if you are wrong but can be worth millions if you are right? Check existing data and make that determination yourself. Give it a critical evaluation and then make your decision.

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