Although the recent Panama Papers scandal and the steel industry crisis has turned public attention away from the EU referendum to a degree, it seems only likely that Brexit will return to the spotlight soon.
The question for those investing in UK property is – what impact will leaving Europe have on property prices? What’s more advantageous in terms of property investment opportunities? And, are there any benefits for those seeking buy-to-let property for sale?
Brexit and Property Investment in the UK
It’s anticipated that house price growth will start to slow as the EU referendum draws nearer – mainly due to the growing climate of uncertainty in the UK. Indeed, experts predict that property prices may even start to fall. The Royal Institution of Chartered Surveyors (RICS) predict that London will be the hardest hit by plummeting prices – with 38% of all surveyors anticipating that, for the first time in years, properties in the capital may start to reduce significantly in price.
Why the Fall in Prices?
In the past, UK property investors have often adopted a ‘wait and see’ approach – preferring to avoid investing until the current climate is more stable. In light of this, it’s likely that falling property prices will only be a temporary state of affairs.
Once the outcome of the EU referendum has been announced, confidence is likely to return fairly swiftly to the property investment market, irrespective of whether the UK stays in the EU, or leaves. However, many investors are wondering what the decision means for the longer-term future of house prices – and whether Brexit or ‘Bremain’ will have a better outcome for their property portfolios.
Property Investment Opportunities if the UK Leaves?
If the public vote determines that the UK leaves the EU, house prices may start to fall in the future. Standard & Poor, a leading credit rating agency, predict that Brexit could ‘potentially reverse the significant boost to real estate asset values that the UK, and London in particular, has experienced in recent years.’ However, others, like Capital Economics, a consultancy, believe that leaving the EU is unlikely to have any major long-term impact.
Making the Most of the EU Referendum
One thing is certainly true – house prices have dropped slightly in recent months, and this may offer plenty of property investment opportunities for those seeking buy-to-let property for sale.
Whilst confidence in the property market is reduced, demand for rental properties certainly isn’t. Indeed, numbers of renters in the UK has never been higher – which puts landlords in a particularly strong position in terms of generating a good rental yield.
Buy-to-Let Property for Sale – The Buy2Let Shop
If you’re keen to make the most of the dipping UK house prices, but aren’t sure how to go about developing your property portfolio, talk to The Buy2Let team. We’ve got a wide range of properties on our books that aren’t available on the general market – plus we offer assistance buying a house at auction, and hold regular property seminars to help improve your knowledge of purchasing property in the UK.
If you’d like to find out more, simply visit The Buy2Let Shop site today.