Brexit uncertainty already seems to be affecting the property market, if recent figures are anything to go by. According to Rightmove, average prices have fallen by 0.9% since last month, leaving investors concerned about the value of their current properties.
Here’s some more details about the situation, and what the experts are saying.
Not a Significant Drop
Before worrying about the dropping prices, it’s important to remember that the summer months are traditionally slower than other times of the year. At present, the drop in prices for buy-to-let property for sale is only compared to the previous year. In real terms, prices are now similar to 2014.
Prices Continue to Rise
Also, in spite of the EU referendum, prices have still continued to rise, albeit less quickly than before. Across the UK, prices have risen by an average of 4.5% since last July, which is down just 1% from the previous month.
Numbers of property sales falling through have increased, but only slightly. Statistics from Propcision (a property analysis company) showed that London has been hit the worst. In the week after the EU referendum, 8% of property sales under offer fell through. In the week after that, the figure rose again, to 9.25% – an increase of 4.25% on the average figures.
The arrival of the new PM and the major cabinet reshuffle has added further uncertainty to the market. The Telegraph predicts that the appointment of Sajid Javid to the Department for Communities and Local Government may herald the introduction of changes to housing policies – and it is possible that this might mean more support for landlords and for investors in the build-to-rent sector.
Predictions for the Future?
At present, it’s difficult to say what the future holds for the property market in the UK. However, given that average prices for buy-to-let property for sale have dropped slightly, it may be a good opportunity for investors to explore the property investment opportunities available.
With fewer people able to buy their own home, the demand for rented accommodation across the country has never been higher – and it’s an excellent time to earn income as a landlord. To boost returns, consider the following:
The Buy2Let Shop Limited
If you want to capitalise on the reduced prices in the wake of Brexit, talk to The Buy2Let Shop team. We’re specialist property investment agents, and we’ll work with you to find the right buy to let property for sale, which meets your requirements.
To find out more about our services, which also include assistance with buying a house at auction and informative property seminars, simply visit The Buy2Let Shop website today.