The decision taken by Britain to leave the European Union in June 2016 caused more than a few jitters in the UK property market.
The unprecedented step taken by Britain to divorce their continental partners justifiably spooked investors, who began to take their money out of property funds and call a halt to developments and deals as property investment opportunities looked a bigger risk than ever.
Two years on from the historic referendum result there is still some cause for concern for the current property market. Britain’s biggest mortgage lender, Halifax, have spoken out to quell fears over another UK housing market crash after the biggest monthly drop in prices since 2010. Elsewhere, ominous noises are being made about the London property market forecast with analysts citing Brexit as the main reason for a drop in demand.
But what’s bad for the goose isn’t necessarily bad for the gander, and London’s struggles won’t reflect on property investment opportunities and UK house prices across the rest of the country. Despite the ongoing Brexit nervousness, the UK property market is still resilient.
A Firm Demand For Property
Even with the uncertainty in the aftermath of the Brexit referendum, the demand for commercial property in the UK is still high and yields remain strong. Despite the potential volatility of the market, property investment opportunities in Britain are an attractive prospect for investors both domestically and from overseas.
The Pound’s struggle against the US Dollar is liable to cause agitation for many an investor but it has paved the way for an influx of foreign money. The biggest run came from Asia, with the year from 2016 to 2017 seeing a huge 11% increase in Asian investment in the UK property market. As a consequence, Asian investors now account for a total of 28% of all property investments in this country.
Once again, British bricks and mortar are being viewed as a sound investment against the uncertainty of the post-Brexit markets. Even as Britain is in the midst of extricating itself from the European Union it is a comforting irony that what could be seen as geopolitical isolationism has made Britain a safe haven of safe and profitable property investment.
But while UK house prices remain a victim of uncertain forecasts, even with evidence of renewed growth, another sector of the UK property market shows incredible signs of strength.
A Strong Student Property Market
The UK’s student property market presents one of the most exciting prospects for investors. Even with the uncertainty surrounding Brexit, the market performed well in 2016 and has come on in leaps and bounds since then. In that year, investors traded 68,000 student beds worth £4.5bn, with the majority of that activity coming after the referendum result. Following the Asian investment trend, the biggest investor in student property since Brexit has been from Singapore.
Liverpool is one of the country’s most popular destinations for students. With a massive influx from China and other nations, the demand for high-quality student accommodation, such as One Islington Plaza, a key part of the RW Invest portfolio, is bigger than ever.
With other factors such as the agitated Pound, the huge influx of foreign investment and warnings from the centre of London, the UK property market remains resilient and shows more exciting potential than many thought possible.
