New research suggests that property investors from around the globe are continuing to invest in the UK despite Brexit looming.
In fact, 85% are currently investing in UK property, and a quarter of those say they are doing so because of Brexit.
The research is part of a global survey for property developer Seven Capital.
55% of responders live in the UK, 17% in Hong Kong, 17% in Dubai, and 11% in South Africa.
30% of the responders from the UK are currently investing in property, all of them in the UK, 23% doing so because of Brexit.
55% of responders are very optimistic about the next 18 months of UK property, and more responders are positive about 3-5 year mark.
Andy Foote, director of Seven Capital says, “These figures demonstrate that people generally recognise that there are bigger factors to consider over Brexit when it comes to the overall trends in the UK property market. Realistically, it’s the fear and the perception of Brexit that will have any effect, rather than the physical act of leaving the European Union,’ said Foote.
“Ultimately, if the market were to take a dip after Brexit, seasoned investors will know that this would more likely be a catalyst for the inevitable swing back. The property market is a prime example of well-known cyclical patterns, growing through recovery and emerging stronger than previous peaks. In other words, if it takes a dip, as it did 10 years ago, it will recover and come back stronger,” he explained.
He pointed out that other factors are at play such as a chronic undersupply which means there is an ever growing demand for homes in the UK, both rented and owned, and that is not something that is going to change with Brexit.
Also, property isn’t seen as a quick purchase or investment. “If you’re looking to buy a home, the chances are you’re not going to be thinking about selling up again in less than five to 10 years’ time, and if you’re a property investor, you’re likely to be looking for long term gains from it. Either way and dip or no dip, the price of your property, providing you did your research properly before buying, is likely to appreciate in the long run.”