Could Brexit usher in a new property rush?

21st October 2020

By Will Leyland

If you look really hard there is some other news floating around other than Covid-19, but admittedly it’s not easy to come across.

Of course, it’s hardly surprising that it dominates the headlines but there is also the small matter of Britain’s most important post-war trade deal to consider as well. Ah to return to the days when Brexit dominated the news cycle.

However, it is still big news and is worthy of some serious attention as talks ramp up and the pressure starts to rise ahead of our scheduled departure from the EU, potentially without a deal, at 11pm on the 31st January next year.

There are some important negotiations currently taking place, with many now reporting that the final stumbling block to a deal is fishing quotas. Various British and European sources are briefing that they’re preparing for a no-deal Brexit, but in reality, they’re likely quite close but injecting a little theatre to try and get some last-minute concessions.

The expectation is that a deal will be struck, even if it is quite late in the day, and there will be a sigh of relief from every corner of the UK and the EU, but what will that likely mean for markets, and more importantly, is it likely to spark a rush for UK property?

EU Housing Market

Despite a fairly respectable recovery after the initial shock of the coronavirus epidemic, things in Europe seem a little shakier now that it appears to be here for the long term and a Brexit conclusion is looming.

According to The Times, Irish house prices and European house prices more generally have been stalling recently. It said “Irish house price growth was among the lowest in the eurozone last year, new statistics show. Irish house prices increased by just 0.4 per cent during this period, one of the lowest rates across the 19-country bloc. No other countries recorded a rate of growth as low, while only two experienced price falls. Property prices fell by 2.9 per cent and 5.6 per cent in Cyprus and Luxembourg respectively.”

Where previously there had been some enthusiasm and optimism that prices would continue to grow across the European economic area, it now seems that they may be in for a rockier ride than first imagined.

UK property offers contrast

As reported in the FT, “The rebound in UK construction activity accelerated in September, supported by a mini-housing boom that helped the economic recovery. The IHS UK purchasing managers’ index for construction rose to 56.8 in September from 54.6 in the previous month. This is the fourth consecutive reading above 50, which indicates the majority of businesses have reported improving activity.”

All this adds to a very positive picture for the UK market that is currently booming, not just for investors but also for landlords, tenants, buyers and sellers.

Prices are increasing along with yields, rental prices and sales figures. Despite the current economic pressures there’s every chance that the sluggish EU performance along with strong UK figures could very well drive even more overseas investors into the UK market.

Are you looking to make your next investment? Get in touch with us today!

Did you find this article helpful?

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Could Brexit usher in a new property rush?

21 October 2020

If you look really hard there is some other news floating around other than Covid-19, but admittedly it’s not easy to come across.

Of course, it’s hardly surprising that it dominates the headlines but there is also the small matter of Britain’s most important post-war trade deal to consider as well. Ah to return to the days when Brexit dominated the news cycle.

However, it is still big news and is worthy of some serious attention as talks ramp up and the pressure starts to rise ahead of our scheduled departure from the EU, potentially without a deal, at 11pm on the 31st January next year.

There are some important negotiations currently taking place, with many now reporting that the final stumbling block to a deal is fishing quotas. Various British and European sources are briefing that they’re preparing for a no-deal Brexit, but in reality, they’re likely quite close but injecting a little theatre to try and get some last-minute concessions.

The expectation is that a deal will be struck, even if it is quite late in the day, and there will be a sigh of relief from every corner of the UK and the EU, but what will that likely mean for markets, and more importantly, is it likely to spark a rush for UK property?

EU Housing Market

Despite a fairly respectable recovery after the initial shock of the coronavirus epidemic, things in Europe seem a little shakier now that it appears to be here for the long term and a Brexit conclusion is looming.

According to The Times, Irish house prices and European house prices more generally have been stalling recently. It said “Irish house price growth was among the lowest in the eurozone last year, new statistics show. Irish house prices increased by just 0.4 per cent during this period, one of the lowest rates across the 19-country bloc. No other countries recorded a rate of growth as low, while only two experienced price falls. Property prices fell by 2.9 per cent and 5.6 per cent in Cyprus and Luxembourg respectively.”

Where previously there had been some enthusiasm and optimism that prices would continue to grow across the European economic area, it now seems that they may be in for a rockier ride than first imagined.

UK property offers contrast

As reported in the FT, “The rebound in UK construction activity accelerated in September, supported by a mini-housing boom that helped the economic recovery. The IHS UK purchasing managers’ index for construction rose to 56.8 in September from 54.6 in the previous month. This is the fourth consecutive reading above 50, which indicates the majority of businesses have reported improving activity.”

All this adds to a very positive picture for the UK market that is currently booming, not just for investors but also for landlords, tenants, buyers and sellers.

Prices are increasing along with yields, rental prices and sales figures. Despite the current economic pressures there’s every chance that the sluggish EU performance along with strong UK figures could very well drive even more overseas investors into the UK market.

Are you looking to make your next investment? Get in touch with us today!

Will Leyland

Did you find this article helpful?


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