Following the vote to Brexit the EU and after the summer period things are looking slightly clearer. However forecasts in to 2017 vary widely.
Following the vote to Brexit the EU and after the summer period, things are looking slightly clearer. However, forecasts in to 2017 vary widely.
The announcement by the Prime Minister, Theresa May, that the UK will trigger Article 50 by the end of March 2017 will spark two years of Brexit negotiations, which will provide greater clarity by 2019.
The smart investor will take advantage of this unique window of opportunity and buy as much prime property as they can in their price range, whilst the cynics miss out on this favourable moment.
The drop in sterling since the Brexit vote is making UK assets particularly attractive to overseas buyers and we have experienced an increase in enquiries. This has resulted in a number of new sales being agreed in the early autumn months.
A word of warning to those waiting by the side lines watching what may happen. There is only limited prime property available and the lack of new property coming to the market is already becoming apparent. Vendors are deliberating over whether to rent their property rather than sell below their expectations and, fuelled by low interest rates, there is little financial pressure on borrowers to fire sale.
Investors need to realise the ‘sweet spot’ of buying property in London is the gain on the currency rate, plus the more sensible pricing by vendors of their property.
In our view the UK and in particular Prime Central London property will become stronger by 2020 and an even more valuable asset than the heights of the market in 2014/2015.