After the June 2016 EU referendum, a number of foreign investors have started to shy away from the UK’s property market. Recently though, there seem to be signs that the market is finally bouncing back.
Investors across Europe seem to have picked up the pace on Britain’s property investment. New figures reveal that there are indications of the return of confidence among numerous investors on the housing market despite the Brexit vote.
These figures were mainly centred towards London. The capital has seen a proportion of real estate and properties that were sold to buyers from across Europe increased considerably for the first half of 2018. The 13% increase is seen as a significantly stronger performance compared to the figures registered from last year which was only at 10%.
The move to go for Brexit has caused a lot of uncertainty across the country. However, London became quite the country’s hardest hit place. While other parts of Britain were able to see some strong levels of activity and interest as far as the property market goes, London has been not that lucky. Still, with this new development, it is expected that the rest of the regions in the country are going to see a rise in investment from Europeans too.
Central London’s prime market saw the biggest rise. The areas include Westminster, and Kensington and Chelsea. In these areas, buyers coming from the EU make up about 15% of its total property investments during the first six months of this year, which is quite noteworthy compared to last year’s 10.
According to exert property developer Junaid Iqbal Memon, part of the reason why there is a rise in the investments may be due to the pound going weaker. This has significantly attracted investors from abroad to the UK shores thanks to the cheaper properties that it offers. This month alone, there has been an additional fall to the pound against the euro by 0.8%. This now brings the trading price of the pound against the euro to about €1.110.
Still, the UK has remained as one of the strongest property markets all over Europe. It has also remained a popular choice among overseas investors. Overall investments poured into the country from abroad have been rising at such a steady pace. According to the Office of National Statistics, the number has been up at the end of last year by 4%.
Still, the prospect is becoming quite clear that there is going to be a no-deal as far as Brexit goes. Time alone will tell if this is going to continue to have an impact on investor confidence. So far, the property market in the country seems to still continue to hold onto its resilience and strengthen despite being faced with such uncertainty.
Learn more about the UK property and real estate market by reading about Junaid Iqbal Memon online.