The UK is negotiating it’s exit from the UK, and there is much in the international press about how the UK is now set for doom and gloom. Amongst all of this it’s hard to tell what’s fact and what’s fiction.
What we do know is a lot of the assumptions of what will happen in the UK is thus far speculative and until 2018 it is effectively business as usual.
Interest rates are still at an all-time low, mortgage availability is good and banks still actively want to lend to investors. Not so long ago, HSBC launched Britain’s first fixed rate mortgage with a rate below 1%: a two-year fix at 0.99%.
London has been the most vulnerable to short term changes on the back of Brexit. Companies based around the financial and legal sectors are recognising that they may not need to conduct business within London and are looking towards relocating to the regions.
John Forrester, EMEA chief executive of Cushman & Wakefield said “We will continue to see occupiers moving roles that it is not essential to perform in London to cheaper locations”
This shows huge potential for economic uplift in the already developing regions which ERE Property have successfully conducted business in for several years.
A lot will depend on the speed of negotiations which officially started this week. The Prime Minister used the Queen’s speech after the election to reinforce her commitment to negotiating the terms of Brexit a priority.
Amongst all of this, the opportunity for overseas investing is as affluent as ever. The short-term loss of power in sterling was actually an opportunity for international investors to put money into UK buy to let property and there are still opportunities there.
Adam Challis, Head of Residential Research at JLL has said that “Investors may well identify opportunities in this market over the short-term, particularly international purchasers that can benefit from the currency arbitrage that has opened up by a weaker pound sterling”.
ERE have the options and flexibility to change our focus on markets which we believe give the best returns to our clients. Even on the back of the announcements we stick by the UK market and firmly believe that the UK property market in the long term with flourish.
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