Post Brexit Property Investment

Brexit is a hot topic for homeowners and property investors since the UK voted to leave the EU. It does appear to be a big risk, but the lack of supply means that house prices are unlikely to drop a huge amount, if any. Admittedly, house prices have slowed, but the property value will still rise. By the end of 2019 house prices are expected to rise 1% on 2018 prices. Predicting the future impact of Brexit is challenging, but one simple fact that makes Brexit seem less important is the ever-growing gap between supply and demand. If negotiations go to plan and the UK stroke free-trade deals then house prices could increase up to 20% by 2020, and further increases are expected to continue in the years after.

There is lots of evidence to support that there is a large number of property investors who are moving their focus to outside of London to cities such as, Birmingham, Manchester, and Liverpool which have excellent yields. This is because prices are lower outside of London and offer a bigger opportunity for capital growth, also the fact that investment and infrastructure in the different regions are increasing.

It’s not only property investors who are looking to move outside of London, but businesses too. With companies such as HSBC and HMRC moving to Birmingham. Doing this, employers could save thousands per employee per year which is a smart business move should Brexit have any impact on their operations.

For those willing to take the rock and invest now the potential long-term returns could be very impressive. Regardless of Brexit there will still be a high demand for rental accommodation which is likely to rise, and the UK will try to keep up with demand. Post-Brexit, the government are unlikely to want to ‘rock the boat’ and introduce new rules and polices, instead they are likely to want to support investors and investment opportunities.

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