Brexit is happening and there is not a person, business or investor with an interest in UK business that has not been forced to consider what the landscape will look like ‘post Brexit.’
The property market has not and should not be exempt from this scrutiny. Indeed, there has been plenty of talk around what the impact of Brexit might be. The consensus being that potential new buyers are waiting to see how the land lies and that there is an attitude of caution around business generally. While this might be true, it seems that when imagining what uncertainty looks like when it becomes certain, there is a tendency to expect the worse.
Despite undeniable uncertainty, there are several encouraging indicators when it comes to UK property investment. From the point-of-view of an international investor, the UK property market has long been an attractive prospect and many of the key reasons behind this are still valid and show no signs of changing.
The population in the UK is set to grow by a further 10m in the next 25 years which means that there is, and will continue to be, high demand for housing. This need drives the market forward and there is no sign of it easing up significantly following Brexit. Therefore, it is likely that only the high-end of the property market will be at risk of adverse impact due to Britain’s exit from the EU.
Another clear, if a little obvious, reason that UK property attracts international investment, is that property is an appreciating asset. Although some experts have identified that the market is slowing due to fear of the unknown in the run up to March 29th, property remains a smart place to put to your money.
Taxation laws in the UK also favour the shrewd investor. The UK has no history of increasing tax burden by instituting retrospective legislation. Also, recent changes in stamp duty laws and further investment in housing schemes from the government, suggests a commitment to stimulating the property market.
There is also continued spending on infrastructure in the UK. This will help maintain prosperous areas as well as transforming more remote locations into desirable investment opportunities. There are already plenty of attractive areas both inside and outside of cities and this is unlikely to be dramatically upset by Brexit.
The market is always uncertain to some degree and investment does involve risk. However, in the face of Brexit, UK property is still one of the surest ways of making money work for you. It would be wrong to deny that there are a lot of unanswered questions and it is more important than ever to take expert advice before making an investment in the UK property market.
Call To Action: Discover how Modus Property can help you invest in the UK property market, book a call with our team to find out more.