29th March 2019
Property has always been hailed a concrete investment and investors have siphoned their capital into bricks and mortar for years. However, so much uncertainty surrounding Brexit and little faith in British politics have set some investors on edge regarding UK property.
With UK property currently slumped in crash-like levels reminiscent of the 90’s it is no surprise that investors are questioning whether property is a good investment. With Mark Carney also commenting that any issues with Brexit could see house prices drop by 35% the reality of property as an investment is being probed.
If we ignore Brexit, property has always been a solid investment, offering strong levels of capital appreciation. For those who have money to invest, most financial advisers suggest property as a safe place to boost their capital.
Property investment benefits vary between the different types, these can include:
The advantages of property investment can include:
Whilst the media has portrayed that the UK property market is struggling due to the economy, a report from The Royal Institute of Chartered Surveyors (RICS) stated that house price growth is still favourable, particularly in the North of England.
Simon Rubinsohn, RICS chief economist commented: “While a combination of a lack of stock and some level of uncertainty, both relating to the interest rate outlook and Brexit, has had an impact on activity, the overall picture in these areas is still encouraging.”
The British economy tends to mirror financial or political changes happening and Brexit is no different. Currently, the majority of investors can be split into two camps; the positive and negative. Brexit has, thus far, preyed on the aspirations and fears of the nation and property investors tend to fit into one of the following categories.
Contrary to some opinions, property investment will not die come March 2019. Pundits believe that only investors who rest on their laurels will struggle with bricks and mortar opportunities when the time comes. Even if investment levels drop or stagnate things will always pick up as this is the trend noticed in history.
Those who think the UK would be better off in the EU are fearful that money won’t be invested into architecture and construction going forward. This would mean less new build developments and but-to-let property for investors interested in this area.
The future after Brexit, particularly with economic affairs, is riddled with mixed opinions from different experts. History dictates that the property market has forever been subject to recessions and surges; investors are used to this. Whilst very few investors have a crystal ball on the property market of the future, many widely assume that property will continue to be a wise investment.
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