The UK property market is renowned for its transparency and being a safe haven for investors. One week on from Brexit, whilst there is still the obvious uncertainty that any major change instigates, experts predict that the UK property market will hold firm and present new opportunities.
First and foremost, despite Brexit, UK property is seen as a safe investment by international investors. The UK’s geography, laws, democratic system and of course, the English language, all play a big part in making investors feel secure in the UK property market.
With regards to new opportunities that Brexit has unearthed, these fall into two main areas – the value of sterling and the impact on pensions. Let’s take a quick look at sterling first. The current volatility in the pound will see certain investors take advantage of the low value of the pound to pick up ‘value for money’ property investments. US and Asian investors in particular are well known for maximizing on investment opportunities in the UK when the pound is weak and Brexit has given them this opportunity on a plate.
Secondly, there is the impact that Brexit has had on pensions. There is no doubt that pensions have taken a bit of a hit as a result of Brexit and although in the long-term, this is likely to recover, this is not much consolation if you’re nearing retirement now and you’ve just seen the value of your investments go down. Bond yields are already starting to fall from already low levels and, with the new pension reforms, it is likely that an increasing number of pensioners will turn to property and buy-to-let investments to supplement their retirement income.
These are no doubt challenging times for the UK property market but for savvy investors there are opportunities to take full advantage of the situation.