24 JULY 2019 – Boris Johnson’s commitment to leaving the European Union as soon as possible provides the greater certainty that businesses and property investors needed.
Whilst there’s some scepticism after yesterday’s result, Boris Johnson’s new status as UK Prime Minster could be a positive thing for the UK property market. In addition to the market doing very well in Manchester, Boris could inject even more confidence in the property market, especially if he reforms stamp duty and delivers Brexit on time, according to Property Wire.
One thing Boris Johnson is certain about in this sea of political uncertainty, is that Britain will leave the UK by October 31st, deal or no deal. Boris’ commitment to leaving the EU as soon as possible provides the greater confidence that businesses and property investors need.
Property Market unshaken by Brexit
Brexit has hung over investors’ heads since the referendum in June 2016. Three years on, with continued political standoffs on several fronts, some uncertainty remains around what the UK’s future relationship with the EU will look like.
Fortunately, there are encouraging signs that Brexit concerns haven’t dampened investor sentiment when it comes to property. Recent Statista research revealed that property transaction volumes in the UK have remained at levels similar to before the 2016 referendum.
In fact, since 2016 the number of completed house sales in England has consistently remained between a healthy 60,000 and 90,000 a month. This is encouraging data and shows investors aren’t being put off by Brexit and are still willing to purchase properties. Regardless of short-term political instability, the long-term benefits of property investment are still shining through.
Huge opportunity for investors from outside the UK
With the property market able to navigate the volatility suffered in other investment sectors, many have seized the opportunity to acquire an asset that’s still delivering huge returns, at a significantly reduced price. Brexit has created the single biggest opportunity for international investors, due to the weakened position of the British Pound. Compared to the US Dollar, the British Pound has weakened by approximately 15%, making property 15% cheaper for investors with funds in a foreign currency.
Investors should however be aware that this currency window of opportunity won’t last forever. The British Pound has already begun to slowly regain its losses against the US dollar.
To discover more about the reality of Brexit and the current property investment market, request to download our investment guide.