For those of us still reeling from post-Brexit confusion, it’s worth taking a moment to remember that the UK is still a great place to invest in property. Here are the top reasons to take the plunge:
Reliability and Accessibility
Expats and foreign investors make up a huge proportion of investment, particularly in London, and this continues despite many changes thrown at the UK this year.
From April 2016, landlords have been charged an additional 3% stamp duty on property purchases. Then, of course, Brexit struck in June, creating mass uncertainty. However, the UK remains a strong, vibrant economy, one which is reliable long-term. For the moment, a depression in the value of the GBP means investing is cheaper than usual – a chance to capitalise! The pound has been a long-standing, steady currency, and is backed by a very robust legal and political system in the UK. This means that reliability is strong; it’s a well-established economy.
It certainly pays to be a long time local. Since the release of the Panama papers, there are much more rigorous anti-money laundering steps being taken against foreign property owners (who make up a huge percentage of property investors!). But this still hasn’t deterred investors, who utilise the accessibility of the property market in the UK to make their mark.
Demand for property remains ultra high. The government has pledged to commission thousands of new homes, however this still fails to measure up to the demand. Overall construction activity remains low, and is set to fall as the exit from Europe draws closer. Capitalising on this could mean investing in an ultra sought-after market, with the potential for great returns.
For those with the deposit and saved money to do so, investing in property in the UK can be a much more appealing alternative to the volatile stock market. Buy-to-let mortgages are low, making property more appealing than ever. Low interest rates in general also mean that return on property is a far better guarantee of profit.
Even after all the chat about Brexit and population problems, immigration and growth continue with strength, especially in the nation’s capital. London continues to boom as it remains one of the most simple, transparent places to invest. A natural hub of activity, investment remained strong even through the financial crisis of 2008-2009. There’s no sign of relenting!
However, let’s not forget other parts of the UK, particularly the Northern Powerhouse, where populations are also rising steadily and cities are being encouraged to shoulder the London-centric burden. Manchester in particular is in prime position, with investors being driven to what is a booming city hub.
In all, it’s important to remember that investing in property requires detailed research. Whilst London remains as attractive as ever, there are opportunities across the isles to invest successfully. The demand from the financial sector remains strong, and the resilient UK economy continues to surprise!