Brexit Latest & UK Property Prices
Updated 17th April 2019
Confidence in the UK as a place for investment is returning. The United Kingdom has been awarded the top spot in a survey which ranks how attractive countries are as investment destinations over the coming year.
Despite “continued uncertainty stemming from its intention to leave the European Union”, the UK knocked the United States off top-spot. The US has been top of the list since 2014, according to the data conducted by accountancy firm EY.
Germany, China and France pulled in closely behind, followed by Canada, India, Australia, Brazil and the United Arab Emirates (UAE).
The UK is the world’s most attractive place for investment and for merger and acquisition activity for the first time in decade, despite Brexit-uncertainty. The UK topped the list of investment destinations in EY’s biannual Global Capital Confidence Barometer poll of 2,900 senior executives responsible for making acquisitions.
In the consultancy’s latest poll the UK’s top position put it ahead of the United States, Germany, China, France, Canada, India, Australia, Brazil and the United Arab Emirates.
The lowest position the UK has been in the survey was seventh- in October 2016.
According to the report, UK M&A activity remained strong since the referendum. Last year, the UK accounted for 10 per cent of M&A globally, worth a combined $400bn last year. This marked the second-best year for the UK since the financial crisis, according to the survey. Globally it showed an overall positive attitude towards M&A is underpinned by broader corporate confidence.
Financial services was the third most sought-after sector in the UK after consumer products and retail, and industrials, EY says. The report states there is currently a period of consolidation within the financial services and the automotive sector across Europe.
EY global vice chair – transaction advisory services Steve Krouskos says: “Geopolitical issues create significant challenges, but executives are determined to overcome perceived barriers and secure – or expand – their presence in markets that support their long-term strategic goals.
“While nationalism may fuel much political debate, technology has made the world a smaller place and executives remain international in their search for growth.”
Property Price News 2019
According to Nationwide’s house price index, house price growth “ground to a halt” in January, with prices just 0.1pc higher than the same time last year. Showing that there has been resilience in the market, despite the uncertainty due to Brexit, Prices haven’t collapsed.
Furthermore, The Royal Institution of Chartered Surveyors (Rics) has previously predicted that national house price growth will come to a “standstill” this year, but a supply shortage “will negate outright falls”.
However, Halifax’s Russell Galley is far more positive on the market outlook. “On the basis that it is still most likely that the UK exits the EU with a form of withdrawal agreement and transition period”, he said that he expects annual house price growth nationally to be between 2pc and 4pc by the end of the year.
Investor Confidence In the UK Property Market Remains
The latest analysis by Market Financial Solutions has found that despite the continued Brexit deadlock, and seemingly endless parliamentary debates, more than half of the UK property investors surveyed have showed no indication to stop buying UK property. More than half of investors have indicated that they do not intend on changing their investment strategy.
The research, which polled more than 500 UK property investors, looks to understand how Brexit is impacting their long-term property investment strategies.
The results showed that since the EU referendum in June 2016, 64% of investors have not let Brexit impact their property investment decisions. Furthermore, 45% of investors have expanded their property portfolio since the EU referendum and only 7% have sold one or more homes as a direct result of Brexit.
The findings show that 57% do not envisage their property investment strategy changing following Brexit. What’s more, is there may be a sharp uptake in property activity after the Brexit deadline, with 29% planning on investing in new properties immediately following the Brexit deadline.
Moreover, the 6 month delay to Brexit is poised to to start a Brexit “relief rally” over the summer, according to researchers at Rightmove which has revealed the market showed signs of bounceback in prices over the past month.
Summer Price Rise Predicted
Continuing political chaos over the UK’s exit from the European Union has damped deal activity so far in 2019. Brexit was initially planned for March 29, but the UK government has now agreed with EU leaders to delay the process to October 31.
Rightmove said asking prices have risen by an average of 1.1%, representing a an increase of £3,447 – in the month to April 6 but remain 0.1% below the level of a year ago.
It said the Brexit delay is likely to further boost confidence in the market. Miles Shipside of Rightmove said: “No doubt there are still a lot of twists and turns to come but this extension could give hesitating home movers encouragement that there is now a window of relative certainty in uncertain times.
Brexit Latest & Property Prices
Published 10th December 2018
After a long period of Brexit uncertainty, we have news that the uncertainty continues!
Today on 10th of December, Theresa May the Prime Minister has announced that the vote in the house of commons due to take place tomorrow on the 11th, will be postponed. May concedes that she the deal on the table is likely to suffer defeat by a “significant margin”.
The vote was to be held on Mays Brexit deal. Therefore, May proposes that she will renegotiate with the EU for better terms and reassurances regarding the UK’s plan to exit the EU on March 29th 2019. Despite delays, May has repeatedly said that the Government are committed to leaving the EU on March 29th.
However, European Council President Donald Tusk insisted the remaining 27 EU countries would not “renegotiate the deal”, including the controversial Northern Irish backstop.
Opportunity International Investors
On the news of May’s announcement today, the GBP has fallen to it’s lowest point against the dollar in 18 months, this, therefore, represents an excellent opportunity for investors buying in foreign currency with increased purchasing power.
For those investors seeking reassurance about the strength of the UK property market, during the current climate of uncertainty, last week figures published in the FT made for very positive reading for UK property investors.
The UK property market has remained largely buoyant since the EU referendum on June 23rd 2016, with Birmingham, Nottingham, Manchester and Liverpool, recording
Since the June 2016 Referendum, the average house price in the 20 UK cities covered in the Hometrack Cities House Price Index, of which 19 have risen. Only Aberdeen has retracted. Therefore, it suggests that there has been “no immediate deterioration” in the outlook for prices or activity following the referendum.
Top Performing Cities Since Brexit
In the year to October, 5 Cities in England have performed notably; recording a 6% or above annual House price Growth.
Leicester (with 7.7 per cent)
Manchester (6.3 per cent)
Birmingham (6.2 per cent)
Nottingham (6.1 per cent)
Liverpool (6 per cent).
London (-0.4 per cent)
Aberdeen (-2.8 per cent)
House Price Summary
Brexit Latest & Property Prices
House price inflation is currently sitting at 3.2% annually, with growth ranging from +7.7% in Leicester to -2.8% in Aberdeen. London prices are falling by -0.4%. The impact of Brexit on housing has so far been limited, our lead housing indicators suggest no imminent deterioration in the outlook for prices.
Read More: Our latest Manchester Property Opportunity One Regent