2019 will see the Brexit deadline come round. There is a lot of speculation about what impact the United Kingdom leaving the EU will have on the residential property market.
Paresh Raja from Property Reporter says how "Worth an estimated £5.9 trillion, the UK’s residential property sector makes up a major part of the country’s economy. And despite the lack of public information on how Brexit will be managed following the March 2019 deadline, the UK property market has proven resilient. Indeed, at the beginning of 2018, 53% of UK investors said they would rather invest in traditional asset classes such as property instead of newer asset classes, with 63% regarding property as a safe and secure asset in the current market.
While the direct outcome of Brexit on the property market is difficult to determine, post-Referendum trends offer a good indication to homebuyers, investors and developers on how the market is likely to react during this significant transition period."
So far the market has looked resilient and Raja goes on to say how "on 24 June 2016, it was announced that the UK would be leaving the EU. This announcement had a profound impact on markets around the world, as investors considered what Brexit entailed for the future growth of investments. The housing market was also affected. Economic tremors caused by the vote reduced transaction volumes for a short period of time, with house prices dipping as potential buyers became more hesitant about investing in property.
This sudden dip was short lived, with investor appetite for residential real estate remaining strong. An index released jointly by the Office for National Statistics and the Land Registry revealed an upward trend in the average UK house price cost just months after the vote – at £227,000, the average price in December 2017 was some £12,000 higher than in December 2016.
Although figures vary across the country, general trends in the housing market have looked promising ever since. Instead of a dramatic fall in housing prices, the national average has been steadily rising across the country. Average prices are still rising – but this is simply at a slower rate. Moreover, the rate of house price growth in the midlands and North East of England has been nothing short of impressive, with investors seeking residential and commercial investment opportunities.
Despite predictions that the property market would suffer in the wake of the referendum, investor confidence remains high. In fact, a study by Market Financial Solutions conducted at the beginning of 2018 showed that over half (53%) of investors are planning to direct their capital into traditional asset classes such as property this year. The climbing demand for property supports the long-held view that bricks-and-mortar are a safe and rewarding investment."
Original article: http://www.propertyreporter.co.uk/blogs/what-could-brexit-mean-for-the-uk-property-market.html