The chaos surrounding Westminster is mounting. The Supreme Court unlawful ruling about Boris Johnson’s prorogation, the possibility of a general election, and the uncertainty about Brexit – all these affect the present political and financial atmosphere.
While the UK posted impressive growth figures early in July, rising by 0.3%, people are still wary particularly that the possibility of a no-deal Brexit is still in the way. This uncertainty has led to a considerable spike in the number of people searching for “how to prepare for recession,” according to HomeWorkingClub.com.
Property Prices Amid a No-Deal Brexit
Economic growth in July somehow alleviated fears of a recession. Still, people have to consider Brexit, especially for those who have an interest in the UK’s property market. Interestingly, the government’s House Price Index showed an increase of £13,542 in the average property prices since the referendum’s announcement on June 2016. As a result, investors who chose to ignore the warnings about the Brexit vote severely affecting the property market actually gained an average of 6.2% increase in their property values since the revelation of the vote.
Will the property prices remain buoyant amid the no-deal Brexit? How can property investors protect their portfolio against this uncertainty in the market?
Protect Your Property Investments from Brexit
First, property investors should find a city that caters to an expanding population and boasts of a healthy growing GDP.
Second, property investors should look for a city with a diverse economy that does not rely on only one industry or sector.
Third, research about the city’s efforts in its regeneration. It is crucial to see whether the local government is working on its infrastructures and other redevelopments, which could support the local housing market.
One of the cities that encompasses all three qualities is Luton. The city currently has more than £1.5 billion of regeneration efforts, with the airport undergoing a major expansion that would contribute as much as £4.3 billion to the economy. Such projects gave birth to tons of housing development projects in the city, with Pearman Court headlining the luxury housing sector.
Pearman Court on Collingdon Street will have 103 upscale new apartments units that masterfully blended architectural intelligence with interior sophistication. Its strategic location of only a few steps away from Luton’s town centre and the train station would provide profitable investments for astute investors.
The Future of the UK’s Property Market
With several variables at play, Savills forecasts that the UK’s Midlands and Northern regions would have the highest growths than any other areas in the country at 15.3% from 2019 to 2023. This property price increases forced people to move out of the city to look for other sustainable places to live in. In the past five years, more than 80% of Londoners have chosen to move out and head to other cities such as Birmingham and Bristol. Some decided to move to a much closer town such as Luton, which offers more affordable housing despite being only a half an hour drive away from London. For investors, properties in Luton provide better yields and capital growth that can protect their investments from Brexit.