How Will Brexit Affected the UK Property Market?

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RW Invest: What will Brexit bring?

Uncertainty. Brexit. And the North West - who really knows what will happen when the UK is scheduled to leave the European Union on Friday 29 March 2019?

But one thing that will remain, is that people will still buy and rent properties - whether that’s student or residential buy-to-let or people wanting to buy their own property. That is something that won’t change.

But how people go about it, and whether property investment in the North West will still be seen in such an attractive light, as it has been for the past five years, is another question.  But given its stellar performance, the North West property investment market is still a real contender beyond the year ahead when the Brexit schedule time is due to begin. Although it’s far too early to give concrete predictions, and it will take some time before the true impact of Brexit can be measured. Regardless, the North West looks promising and will continue to work with and lure in investors from across the globe.

Investors and Brexit

It’s important that property investors, whether they are based in the UK or overseas, find out how the market will change and what those changes will be.

One thing that will always remain is that the property investment market will always create opportunities for investors – mainly those who foresee opportunities where others do not and are willing to do business. In property circles, it’s often said that demand for property is at the whim of sentiment/feeling or emotion, rather than robust financial factors. And is the reason why many property experts say we see booms and slumps in the market. And if sentiment has any real basis, then Brexit doomsday scenarios won’t help.

But with every ‘Brexit nightmare’ perspective is the counter argument – one which is positive and brings new opportunities to the market. 

At the moment, the North West buy-to-let market is extremely positive. Liverpool often ranks highly in surveys of best buy-to-let areas, and the city is described by an independent mortgage broker, Private Finance, as one of the UK’s best-performing property investment locations with average net rental yields of 6.2%. Manchester also consistently scores highly as a place to invest and over the past decade there has been strong overseas investment in both cities. There are concerns that Liverpool and Manchester will receive less inward investment because of Brexit, a concern that cannot be ignored, but one that must be put into economical context.

Currently, investment in the two cities is working successfully. China and Shanghai have become a fruitful and lucrative partnership for Liverpool. Meanwhile, the Manchester and India Partnership (MIP) is growing from strength to strength. According to data from Hometrack, Manchester’s buy-to-let market has one of the fastest house price growths than in any other UK city ‒ rising 8.8% over the past 12 months.

Property commentators predict that post Brexit buy-to-let student property in the North West - whether in Liverpool or Manchester – is a market that will still attract tenants and buyers mainly because both cities are home to world-class universities.

What’s the future?

Regardless of what Brexit brings, investors will need to assess the ROI of their chosen property market. They need the right information and the know what options are available in order to make savvy decisions - you can find out more information and view properties here at RWinvest.

Property investment after Brexit will look different, but the principles remain the same: yield, capital appreciation, mortgages, location, market (residential or student).

Until the UK leaves the European Union it’s a waiting game to find out what unravels. Change is on the way. But with that comes plenty of opportunities for investors to build and grow a thriving property portfolio after Brexit because there will always be good reasons to invest in the North West.

For information on property investment opportunities contact RWinvest on +44 (0)151 808 1250 Email: info@rw-invest.com or visit our website www.rw-invest.com.

© 2018 Copyright RW Invest - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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