Brexit Impact on the UK Property Market: What to Expect Now

Understanding the UK’s Property Market Position Post-Brexit

The present state of the UK’s property market shows that Brexit led to positive shifts in the real estate market. The housing prices are stable and growing at a positive rate. Overseas investors are increasing their stakes in the property market resulting in steady transaction volumes and price stability. Let’s explore more on the present state of the UK’s property market

Brexit Impact on Property Prices

Defying all negative predictions the property price has witnessed a steady rise post-Brexit. In places like the North West and the East of England, price rise was more evident. Data shows a significant increase in housing prices and private rents in the UK after Brexit.

Brexit and Affordability

Following Brexit, there was a decline in the value of the British pound relative to the US dollar, which helped foreign investors find affordable properties in the UK. Attractive currency exchange rates result in promoting investment and price stability. Several prime locations like central London have experienced a bloom in overseas investment.

UK’s Rental Market After Brexit

Like the housing prices, the rental market also shown resilience and growth after Brexit. The private rent prices have increased over the years and there is an increasing demand for rental accommodations. The Northern UK regions are showing good potential for rental investment. Both domestic and international investors are searching for buy-to-let properties. Investment in a rental property offers a good yield across different areas in the UK.

What to Expect Now?

Brexit has brought various possibilities in the property market of the UK and also has a couple of risks as well.

Opportunities in the UK’s Property Market after Brexit

1. The devaluation of the British Pound has made properties affordable for overseas investors and the real estate market is opening up more promising, profitable opportunities for investment.
2. Brexit has levelled up the regional market and areas outside London and other prime locations also offer good returns on investment.
3. New government initiatives such as the “Help to Buy Scheme” are supporting the stability and affordability in the market.
4. New investment avenues are available as the Government is focusing on sustainable, smart and green construction.

Challenges Posed by Brexit

1. Several property-related regulations and rules have been changed after Brexit which may impact property transactions.
2. Ongoing economic challenges and fluctuating currency values may shatter the confidence of investors.
3. Brexit led to disruptions in supply chains that impacted construction costs and other material expenses.