We get this question daily whether to invest in the property market now. We have come up with three points to consider before making an your decision.
- The UK remains politically stable
Despite the resignation of major politicians, the UK still remains stable because companies and investors are still willing to spend money in the UK. A Pharmaceutical company Glaxo Smith Kline has already invested £375 million since Brexit because he believes the UK is still an ‘attractive location’. London City Airport has received £344 million for an expansion. Siemens the largest engineering company in Europe has also committed to continue investing in the UK.
- Stability in the rental market
Due to the stability of the rental market in the UK, this has a major effect on property investment. According to the Association Of Residential Lettings Agents property market is still stable despite Brexit. “While we obviously need new houses to balance the growing gap between supply and demand, what’s positive is that the situation isn’t worsening as a direct result of June’s Brexit result.” The figures have remained the same regarding rentals, as this result this will continue to ease potential investors’ fears that there will be a shortage of demand for their rental properties. The demand of people wanting to let is still outstripping the supply, concluding that the average rent in England and Wales has risen to £846 in July.
- House prices are stable
Initially post-Brexit houses did drop, however this has turned around. The Royal Insatiate of chartered Surveyors have reported that house prices are now stable. It has been predicted a within the next five years properties should increase by 3.3%. London are expected to fare better, and property prices in London are not expected to move for the next 12 months. Asking prices in August increased by 0.6% and annual growth in August increased to 5.6% from 5.2% in July.