How is Brexit expected to affect the UK Property Market?
While we know that property prices in several UK cities are currently performing highly, with some fantastic rental yields and property growth areas in the UK, the issue of property prices after Brexit is one that still leaves many investors feeling uncertain.
After leaving the EU officially on the 31st of January, the UK has entered into a transition period that will last until the end of 2020. During this period, the UK will negotiate with the EU until a final deal has been reached. The main reason that Brexit has affected the UK property market over recent years has been due to uncertainty brought on by the vote.
Following Boris Johnson’s election victory in December 2019, however, things have massively improved in what has been named the ‘Boris Bounce’. Because Johnson was elected with such a high majority, the UK regained a lot of confidence in both the property market and economy.
Immediately following the general election result, the GBP reached the most elevated rate it had been at since May 2018, investment sectors saw a growth in share prices, and property prices jumped by 1.8% in one month.
Due to this boost in market confidence, experts are predicting that both property prices are rental values are set to see a rise over the coming years, even with some remaining uncertainty around the Brexit deal.
Specifically, the best places to buy in UK areas are expected to continue to be those in the North West, with JLL predicting a 3% growth in rental costs for Liverpool and Manchester. Rightmove has also suggested that UK property prices as a whole will increase by 2% on average during 2020.