Nine months after the Brexit referendum, Theresa May triggered Article 50 on the 29th March 2017, starting the two year divorce process of withdrawing the UK from the European Union. This has left many investors asking what Brexit will mean for property developers.
Property investment post referendum
Following the referendum the British economy remained strong, unemployment levels remained relatively static and there was a slight increase in wages, although hiring uncertainty remains.
In January 2017 the average property price was £205,000, which was reflected in a 0.2% rise for the month. Central London however experienced a slowdown, particularly at the high end, while in the outer boroughs less expensive houses are however still selling and renting well.
It is worth noting here that the Central London price drop that has happened could in fact be a result that is more likely linked to the Stamp Duty changes of last year and not be linked to the result of the Brexit referendum.
Property investment post Article 50
Property investors continue to enjoy low borrowing costs and low mortgage rates, which is expected to lead to an overall 2% property rise forecast, for the year.
The uncertainty of leaving the European Union is counteracted by the fact that there is still a lack of available housing for sale, with the UK needing 174,000 new homes each year. This number of new homes is not being met, so while demand is higher than supply, the situation is not likely to change.
Property investment looks to continue to be a worthwhile venture in the UK, post Brexit, but of course those looking into becoming a property investor, should attend a professional property training course. This will help them to understand how to avoid the risks and bring in a profit without going through a disastrous learning curve.
The more lucrative areas for property investors are in the northern cities, such as Leeds and Manchester, where prices are still increasing above the average. The Midlands and the North will allow new investors to acquire a solid portfolio with a lower initial investment and higher average net yields
The bottom line is that not much has happened since the referendum vote and with housing demand high, this may point to the short term trend, since the triggering of Article 50.