Brexit has been the key topic of conversation for many people over the last three years, and since the deal was finalised towards the end of January, the property market has seen a huge increase due to market stability and confidence with investment. Those who are looking at UK property may find the impact of Brexit on the property market highly interesting. Now the deal has been settled, and the UK is finally in the leaving transition period, we can now rest assured that the property market is a more secure and safe sector to be involved in.
Since the original vote in 2016, how has Brexit impacted the property market, and what does the future of the country look like when the transition period is over? While time will tell about the truth of Brexit and how investments will be impacted, we can predict what will happen and how investors can expect the market to change within the coming months and years.
The Boris Bounce
After the recent general election which voted to keep the Conservative government and Boris Johnson in power, the property market has seen a significant confidence boost, with individuals choosing to invest now more than ever. The 'Boris Bounce' indicates a post-election surge in buyer demand after the result. Although this isn't directly linked to Brexit, this political occurrence has changed the face of the property market. Many locations experienced one of the greatest increases in buyer demand within the last few decades after the election result. Several areas, including some in the South of the country, have seen an increase in property prices and a higher demand which is good news for investors.
The Initial Impact of Brexit
In 2016 through to 2019, the impact of Brexit was huge across the country. Investment figures were down due to uncertainty, but when everything was finalised, this was only good news for investors across the country and globe. Initially, Brexit was seen as a great thing for the country and people didn't expect the reduction in property investment. However, when things were seen as more stable, the property market has seen a steady increase. The UK prime minister, Boris Johnson, has consistently maintained that leaving the EU will be beneficial for the British economy, and this is finally starting to become true. As the UK leaves the EU, more demand grows for UK property before rules change surrounding UK property.
What Do We Know Now?
The impact of Brexit has been huge, but what do we know going forward about the property market and its future? As negotiations take place over the next few months, we must prepare for how Brexit will make the property market change and the impact this will have on investors and those interested in investing in property.
● The rate of house growth plummeted in the year after the referendum and has been on the decline since. However, ever since the election clarified the market, it has started to improve. This is good news for investors who are looking at the property sector, as they can purchase a property while prices are lesser, and sell them on a few years (or decades) later when the market is secure and their property has significantly increased in price.
● Capital appreciation is a key holder in your success. RWinvest emphasis the importance of looking at areas where capital appreciation is projected. Cities such as Liverpool, Manchester and Sheffield all offer investors high rental yields, and are projected to gain large amounts of capital growth over the coming years as regeneration changes the cities and increases demand.