Brexit: What Can UK Property Investors Expect On January 31st 2020
The long “Brexit dip” in the London property market appears to have bottomed out ahead of a possible spring revival. While the economy is still languishing, the current weak pound could actually make the UK property market more appealing to foreign investors, as their money will go further.
Assuming the European Parliament also gives the green light, the UK will formally leave the EU on 31 January with a withdrawal deal – and it will then go into a transition period that is scheduled to end on 31 December 2020, during this period the UK will effectively remain in the EU’s customs union and single market.
The UK Property Market has been held back over the last 12-18 months due to the uncertainty of Brexit and latterly the election. Now both of these questions are settled it is likely there will be a bit of a Brexit bounce in activity at the start of 2020. As a result, we expect more people to put properties up for sale and more buyers coming into the market.
Estate agent Savills has said it is benefiting from a “Boris bounce” that has driven an increase in UK house sales since the December general election.
Looking to the year ahead, increased political stability in the UK should maintain improved sentiment in real estate markets. Nevertheless, some caution may remain until the full impact of Brexit is better understood.
The UK property market is looking increasingly attractive to foreign investors thanks to the country’s current weak currency, with high-net-worth individuals from across the world looking to snap up some Brexit bargains.
It is still too early to predict what impact Brexit will have on property values. A weakening of the appeal of UK investment could drive prices down or a lack of certainty could drive up interest.
“In years gone many international buyers never look past London, but since 2016 other key UK locations have become increasingly popular option for foreign investors looking for value that just isn’t available in London.”
The February Budget will no doubt affect the market, especially if there are reforms for first-time buyers, however, it’s largely expected that confidence will somewhat return, and house prices will increase.
Whilst there are concerns about the impact of Brexit on the U.K property market, it would seem that for the most part, it’s only a decelerated market from a domestic perspective. Foreign investors are not put off and are instead seeking areas in the UK that secure investments with the greatest possible yield.
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