While we all have our own views on Britain leaving the EU, there’s no doubt it’s left some investors feeling understandably nervous. “What does this mean for me and my property investment?”
Passionately championing the superiority of property over all other asset classes, now as always, we call upon what is perhaps our strongest USP; our unswerving belief that ..
A bricks and mortar asset will weather the storm better than any other. Ultimately, people need homes and ‘generation rent’ will prevail due to the pure volume of affordable housing required.
We’re all unsure of the ramifications, but we are confident that the property market will continue to enjoy its buoyancy and forecasts so far predict a continued growth in both the national and overseas markets … with in fact, some very positive outlooks.
Here are a selection of the key messages coming through:
Demand remains firm
We should certainly be looking to take advantage of the change. Demand for apartments and accommodation within the provinces of the U.K. remains very strong based on supply and demand fundamentals. Overseas investors will find property cheaper here whilst the UK also opens up the new foreign markets.
Recent forecasts show already that net numbers will remain the same – just a different person from different region. Many Australian, American and Canadian citizens will now look to access the UK, having being previously denied over immigrants from other economic regions of Europe.
While the pound is low in the short term, this presents an exciting opportunity for overseas investors purchasing UK property.
For example, Last week for every GBP brought with AED Dirham you got a rate of AED5.4. Since the referendum this rate has lowered to AED4.9 (today’s rate) meaning that if you were changing AED5,000, last week you would have got £925.92, this week you will receive £1,020.40 for the same amount.
That’s a 10.2% increase, which is huge when purchasing a property.
UK cities will gain power
Cities like Birmingham and Manchester will become more significant, as the country strives to thrive on its own. We cannot just rely on London for economic output.
The Prosperity message is clear: Property has proven itself to be one of the most stable asset classes for investors, due to the simple fact that people need houses. This will never change.