UK Property Market Resilient After Brexit Vote
The UK property market proves resilient in the wake of the EU referendum result. The UK remains an attractive place to invest underpinned supply and demand imbalance. The Fall in the value of sterling has only increased appeal from international investors. Summary:
- UK property asking prices has experienced an expected a summer lull
- Market supply and demand driven, underlying demand for property and an a chronic shortage provides investors a secure long term investment market.
- The fall in the strength of sterling means overseas investors from the Middle east and Asia will continue to invest in the UK property market.
- House-price decline only slightly above pre-vacation norm.
The appeal for property within the UK as a long term investment will remain, as the UK property market shows resilience after the Brexit vote. Prices remained relatively stable after the initial uncertainty of Britain’s vote to leave the European Union. According to new research by property website Rightmove, asking prices for UK homes declined 0.9% to £305,504 this month, a drop only slightly greater than the average over the past six years. Buyer demand declined from last year, when it was boosted by the general election result, but was at the same level as 2014 amid supply constraints and low mortgage rates. Miles Shipside Director of Rightmove, commented: “While confidence has been unsettled, the governmental instability in the few days after the referendum now seems to be being addressed far more quickly than was originally imagined. “This is not a new credit crunch and the effect on banks and mortgage lending should be limited. As long as lenders keep mortgage deals attractive and available, the underlying demand for home ownership should overcome most uncertainties.” Home values typically fall about 0.4% in July as sellers’ price more conservatively going into the summer months. Areas of the country where the housing market was struggling earlier in the year, such as parts of London, will continue to see price reductions. In an attempt to help meet demand, homebuilding could get a boost if the government scales back fiscal austerity to aid the economy, as Britain’s new Prime Minister Theresa May has indicated. The stock of available property is insufficient to meet the growing demand. figures from Yorkshire Building Society show that the UK has missed its house building targets by a whopping 1,199,180 since 2004. With the UK property market showing resilience post Brexit & the pound still depreciated after falling to levels not seen since 1985 following the UK’s vote to leave the EU, there will be continued appeal for foreign investors from the Middle East and Asia. Investors from the U.A.E, Qatar, China, Hong Kong and Singapore and Malaysia are out in force looking to buy UK property while the pound is weak. Read More: Brexit Effects on UK Property Market Click Here for Latest Property Opportunities
UK Property Market Resilient After Brexit Vote
The UK property market proves resilient in the wake of the EU referendum result. The UK remains an attractive place to invest underpinned supply and demand imbalance. The Fall in the value of sterling has only increased appeal from international investors. Summary:
The appeal for property within the UK as a long term investment will remain, as the UK property market shows resilience after the Brexit vote. Prices remained relatively stable after the initial uncertainty of Britain’s vote to leave the European Union. According to new research by property website Rightmove, asking prices for UK homes declined 0.9% to £305,504 this month, a drop only slightly greater than the average over the past six years. Buyer demand declined from last year, when it was boosted by the general election result, but was at the same level as 2014 amid supply constraints and low mortgage rates. Miles Shipside Director of Rightmove, commented: “While confidence has been unsettled, the governmental instability in the few days after the referendum now seems to be being addressed far more quickly than was originally imagined. “This is not a new credit crunch and the effect on banks and mortgage lending should be limited. As long as lenders keep mortgage deals attractive and available, the underlying demand for home ownership should overcome most uncertainties.” Home values typically fall about 0.4% in July as sellers’ price more conservatively going into the summer months. Areas of the country where the housing market was struggling earlier in the year, such as parts of London, will continue to see price reductions. In an attempt to help meet demand, homebuilding could get a boost if the government scales back fiscal austerity to aid the economy, as Britain’s new Prime Minister Theresa May has indicated. The stock of available property is insufficient to meet the growing demand. figures from Yorkshire Building Society show that the UK has missed its house building targets by a whopping 1,199,180 since 2004. With the UK property market showing resilience post Brexit & the pound still depreciated after falling to levels not seen since 1985 following the UK’s vote to leave the EU, there will be continued appeal for foreign investors from the Middle East and Asia. Investors from the U.A.E, Qatar, China, Hong Kong and Singapore and Malaysia are out in force looking to buy UK property while the pound is weak. Read More: Brexit Effects on UK Property Market Click Here for Latest Property Opportunities
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