After years of uncertainty and a last-minute General Election in December 2019, the UK formally left the EU on 31 January 2020.
While the Conservative Government have agreed to the terms of its EU departure, both need to determine what their relationship will look like in the future. The terms will be worked out during the transition period, which began after ‘Brexit Day’ (31 January 2020) and is due to end on 31 December 2020.
During this 11-month period, the UK will continue to follow the EU’s rules and its current trading agreements will not change.
The UK property market is already experiencing a recovery after the Brexit uncertainty has been lifted. Rightmove recently reported that they enjoyed their busiest ever January on record, surpassing 150 million visits to the site. In addition to this, the number of sales agreed in January 2020 is up vs the same period in 2019. Sales agreed in the North West went up by 10% in comparison to January 2019.
Whilst the North West housing market seems to have weathered the Brexit storm well, picking up gains where London has suffered, it seems that the property market is set to become even stronger after Brexit. Housing demand is through the roof and developers are working hard to keep up with Manchester’s population influx. Manchester City Centre’s population is set to hit 100,000 by 2025, with 600,000 people living across Greater Manchester already.
Manchester’s job market is flourishing with businesses like Amazon setting up their Northern HQ here and the creation of new business districts such as NOMA, which in turn increases demand from tenants wanting to live in Manchester and therefore the number of developers trying to keep up with demand.
With high rental demand comes high rental yields, and Manchester has some of the best around at the moment. Our 115 Princess Street development is currently open to investment and has a guaranteed 7% Net Rental Yield. In addition to this, our investments are fully managed, from development through to lettings and property management. In 2019, 97% of our apartments were let to tenants, showcasing how in-demand our apartments are in Manchester.
At the moment the pound is very low compared to most currencies. It was predicted that the pound would soar after ‘Brexit Day’ but this didn’t happen, as demonstrated in our table below.
While a weak pound isn’t great for those living in the UK and travelling from the UK to other countries, it does make the UK a more attractive place for overseas property investors.
Many investors are waiting to see what happens after Brexit, meaning that the demand is not as high as it has been over the last few years. However, if investors wait until prices hit the bottom, and everyone thinks they’re at the bottom, it means property prices can only go up.
This currency window of opportunity won’t last forever. If you are looking to invest in a property in Manchester, the UK’s buy-to-let hotspot, get in touch today and we will introduce you to our latest developments.