London has always been one of the prime locations for property investment. Yet, the recent years upheavals, including Brexit and the global pandemic, have changed the real estate landscape. Despite these challenges, the property market appears resilient, suggesting the existence of promising London property investment opportunities. This blog explores the various aspects of post-Brexit investment opportunities in London.
House prices remain a critical indicator of market performance. Contrary to forecasted declines following Brexit and the pandemic, house prices grew by an unanticipated 32% from July 2016 to May 2022. Even in the period of political unrest between 2017 and 2019, the market levelled off rather than declined.
The unwavering demand outpacing the supply might be a reason behind the continued price rise, defying the potential Brexit impact. The forecast by experts suggests a continuous rise of nearly 19% across the UK by 2026, offering ample investment opportunities.
While the impact of Brexit differs regionally, London traditionally has been a high performer. However, recent statistics indicate a slowdown in London’s growth as compared to other regions, with the highest increase in house prices noted in the East Midlands at 42.3%, compared to London’s 12.7% increase. Although affordability and adverse tax landscapes contributed to this, Brexit played a role in moderating London’s growth rates.
Transactions in the Market
Just as house prices reflect the state of the property market, so too do the number of transactions. Between July 2016 and May 2022, there was a 14.4% increase in completed residential transactions, despite initial post-Brexit worries. Brexit did not significantly discourage transactions but sparked a massive 140,000 ‘extra’ transactions due to the stamp duty holiday-induced by the COVID-19 pandemic.
Levels of Investment
Overseas investors have been a significant contributor to the UK’s property market. The number of properties registered to overseas buyers increased during the Brexit period.
Performance of the Pound
The decline in sterling following Brexit created a forex window attractive to foreign investors. Especially USD investors found UK property a cheaper and more lucrative investment opportunity. This trend may continue, fuelling more overseas investments in the real estate sector.
Legislative Reform As a Result of Brexit
A series of reforms between 2016 and 2020, among them additional stamp duty charges, changes in mortgage interest tax relief, tighter regulations for houses in multiple occupations (HMOs), and altering eviction rules, would have influenced investors’ behaviour and decisions. Nonetheless, instead of Brexit directly affecting UK property investments, it can be said that the UK’s own legislative actions impacted the market.
UK Property Investment Post-Brexit
Getting apt financial products to finance investments post-Brexit is crucial. Your loan provider should be flexible, considering the complexity of the UK property market post-Brexit. A tailored approach to loan applications that encompasses all aspects of an investment opportunity is beneficial. Speed in finalizing a loan deal is also essential to keep up with the competitive UK property market.
Most importantly, you need to trust your loan provider and ensure transparency in all transactions. London property investment opportunities are diverse and abound, hence, working with a trustworthy partner like Reloc8 Em can make the process smoother. Providing upfront indicative loan terms, Reloc8 Em allows clients to invest with confidence.
Navigating London’s property investment landscape post-Brexit requires sharp insight, in-depth knowledge, and expert guidance. Choosing the right partner can help you capitalise on the opportunities that the city offers, even during uncertain times.
Contact Reloc8 Em, your trusted guide for property investment opportunities in the UK. Let our team of experts guide you around the curves of the London market post-Brexit, ensuring your investments are strategically placed for the best return. Contact us today for a consultation.