Brexit Certainty To Boost Property Market

A rebound of property prices is expected throughout Britain now Brexit is a certainty, and it’s not the only good news for investors.

Confidence in the financial markets bounced back post-election and many elite investors have gained a healthy boost to their fortunes. Peter Hargraves, the Lancashire born billionaire, did very well adding US$300m to his wealth, and he was in good company with circa $2.8b added to 16 British Billionaires, so what’s not to love about that!

The North Leads The Way

For the rest of us mere mortals, we can be content in the knowledge that our home or if we’re investors ‘homes’ are likely to start rising in value again. The Guardian says to expect an initial 2% rise in property prices starting in the north and what’s interesting is the north has been typically a Labour stronghold yet most voted for the Conservatives this time around.

Brexit and the Labour leader make it a difficult choice for some areas like Workington, and it was among 24 labour heartland seats to fall. We are living in exciting times that is for sure, and while Brexit is a given, the deal for the UK is not.

Expect to see a rollercoaster of ups and downs of the British Pound as the months ahead unfold. Boris will need to do some smooth talking to get his deal approved and keep the British public on side.

Overseas Investors Return

Hong Kong investors have already started looking north, all the way to the UK. While the British economy and financial outlook are not as rosy as we’d all like, the Boris Bounce is set to have a positive impact on the London housing market where many foreign buyers like to park their wealth.

Compared to Hong Kong, the UK is very stable, and property investors have already started the buy up with an influx of capital in the high-end residential market. Plus it’s not just the individual investors, and the REITs are expected to do well too.

European investors like what they see in the UK, with one European family spending £65m on a London home within hours of the election result.

In the Conservative election manifesto Boris has set out to build one million new homes over the next five years and with the own election shares in building firms went just one way, and that was up!

Helping Britain’s 2 Million Renters

Another win for the property sector is the move to make it easier for renters to buy their first home. The creation of a new long-term fixed-rate mortgage market to lock in rates will provide certainty, especially for those new homeowners on fixed incomes.

Another first is provision for a massive discount under a new home scheme where buyers could secure 30% on the purchase of a property, and if this sounds too good to be true, well we may all be pleasantly surprised!

Renters Secure In Their Tenancy

Renters can also breathe a sigh of relief in the knowledge they can not be evicted from their rental property by the Landlord without just cause. Boris and co. will get rid of the ‘no-fault evictions’ and thus providing more certainty and security to tenants.

Renters can also enjoy the new Lifetime Rental Deposits. Anyone who has had to move rental properties, and scrape together a bond while their current bond is tied up in their existing rental will be delighted with this initiative from the Conservatives.

As long as there are no rental arrears or damages, the tenant can move to a new rental with needing to come up with another bond. Plus it’s a win for the landlords too who will no longer need to deal with bonds and the paperwork.

Summary

There is a lot to be positive about in the UK now the election is over, and there’s certainty around Brexit, it’s happening, and while the detail of the deal is unknown, investors are taking action,. It’s put a skip back into the step of homeowners, renters, first home buyers, property investors and overseas buyers, and what’s not to like about the presence of enthusiasm, that’s been absent and sorely missed for the last three years.